Colorado: Amendments to Paid Sick Leave Pay Calculation

The Colorado Healthy Families and Workplaces Act (HFWA) requires Colorado employers to provide two types of Paid Sick leave to their employees: public health emergency leave and accrued leave.

Currently, the HFWA requires all employers to provide paid sick leave to their employees, accrued at one hour of paid sick leave for every 30 hours worked, up to a maximum of 48 hours. Paid leave is paid at the same hourly rate or salary which does not include overtime, bonuses, or holiday pay and benefits, including health care benefits. And leave is paid on the same schedule as regular wages.

Effective January 1, 2023, regulations will change on how employers calculate the rate of pay when employees use paid sick and safe leave and/or public health emergency leave. The amended rules state that the pay rate shall be calculated based on the employee’s pay, over the 30 calendar days prior to taking leave, which shall include any set hourly or salary rates, shift differentials, tip credits, and commissions and shall not include overtime, bonuses, or holiday pay. If an employee has not yet worked 30 calendar days, the longest available period shall be used for the said calculation.

Employers are required to align their payroll with these latest rules to ensure employees receive the accurate rate of pay.

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