Colorado Employment Contract: Definition, Key Considerations
Quick Facts — Employment Contract Lawyers (Colorado)
- Avg cost to draft an Employment Contract: $1220.00
- Avg cost to review an Employment Contract: $360.00
- Lawyers available: 44 Colorado employment lawyers
- Clients helped: 32 recent employment contract projects in Colorado
- Avg lawyer rating: 4.92 (4 reviews)
What is a Colorado Employment Contract?
A Colorado employment contract is a legally binding agreement executed by an employer and a new employee. The contract lays out the rights and obligations of each party throughout the employment relationship.
It is common to find the following issues negotiated in an employment contract:
- Employee’s income
- Payment schedule
- Employee’s job title and list of duties
- Employee benefits
- Employment start date
- Duration of employment
- Procedures for discipline and grievances
- Causes for termination
Colorado is an “at will” employment state so without a valid employment contract, employers and employees are free to end the working relationship at any time for any reason. This means that an employer can terminate an employee without any reason or cause.
The only two exception to this rule are the public policy exception and the implied contract exception which are both recognized in Colorado.
Public policy exception. Prevents an employer from firing an employee if the termination involves an employee’s compliance with state laws like refusing to commit a crime.
Implied contract exception. Prevents an employer from firing an employee when an implied contact exists. This can be an oral suggestion of job security or a section in the employee handbook that outlines termination policies.
Are Employment Contracts Enforceable in Colorado?
For the most part, employment contracts are enforceable in Colorado and the contracts can either written or oral agreements. The contracts cannot violate state laws or public policy.
There are parts of an employment agreement that will not be enforced in Colorado. In August of 2022, Colorado passed a bill that severely limited the enforcement of non-compete, non-solicitation, and other restrictive employment agreements.
The new bill made the following changes to Colorado employment law:
- All non-compete agreements will be void unless they are entered into with a “highly compensated” worker. The 2022 threshold for “highly compensated” is $101,250.
- Void all non-compete agreements not designed to protect trade secrets
- Void all non-compete agreements that are more broad than necessary to protect an employer’s interests
- Void all non-solicitation agreements that are entered into with an employee making less than 60% of the salary of a “highly compensated” worker
- Require all non-compete disputes to be adjudicated in Colorado courts under Colorado laws.
What Are the Legal Requirements for Colorado Employment Contracts?
The legal requirements for a Colorado employment contract are governed by Title 8 of Colorado Revised Statutes and Colorado contract laws. The contract should contain an offer, acceptance, and consideration.
The following information should also be included in a Colorado employment contract:
- Name and address of the employer
- Name and address of the employee
- Job title and description
- Salary
- Benefits
- Company rules
- Disciplinary procedures
- Working hours
- Causes for termination
Additional clauses can and should be added to ensure that both parties know and understand their obligations in the working relationship. Employment contracts can cover most employment related issues as long as the terms do not break the law or violate public policy
Types of Colorado Employment Contracts
There are several types of employment contracts based on the type of employee a company hires and the scope of work to be completed. The three most common types of employment contracts are permanent, fixed term, and consultant agreements.
- Permanent employment contract. This contract is used by a company to hire a permanent employee with regular hours and an hourly wage or salary.
- Fixed term employment contract. Used when hiring employees who will only work for a specific period of time or to complete a specific job. This is common contract for seasonal workers or when hiring additional workers for a large project.
- Consultant agreement or freelance contract. Consultants, independent contractors, and freelancers may work for a company; however they are not considered employees. The employee contract for this type of work needs to lay out the specific roles of each party in the business relationship.
Frequently Asked Questions
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Meet some of our Colorado Employment Contract Lawyers
Thomas S.
28+ years experience. Licensed in Colorado and New York. Areas of expertise: estate planning, wills and trusts; trademark law; patent law; contracts and licensing; small business organization and counseling.
"Thomas was very knowledgeable and is great to work with! Thank you very much - looking forward working together again in the future!"
Laurie R.
Business-minded, analytical and detail-oriented attorney with broad experience in real estate and corporate law, with an emphasis on retail leasing, sales and acquisitions and real estate finance. Extensive experience in drafting complex commercial contracts, including purchase and sale contracts for businesses in a wide variety of industries. Also experienced in corporate formation and governance, mergers and acquisitions, employment and franchise law. Admitted to practice in Colorado since 2001, Bar No. 33427.
"Absolutely incredible experience working with Laurie! I certainly will work with her hopefully in the future, and would highly recommend working with her for commercial lease agreement review. Very detailed, and extremely quick and responsive!"
David U.
For the last 25 years I've focused on representing businesses and entrepreneurs in transactional law deals, including LLC creation, operation and sale of businesses; real estate sales and leasing; and general contract negotiation and drafting. While I've helped all manner of businesses work out a variety of contract and business matters, I am an expert at helping clients with buying and selling commercial properties including multi-family and office projects and buildings, subdivisions, and retail shopping centers. I am also a recognized expert negotiating leases for retail and office tenants and landlords. Over 25 years I've honed my skills a lawyer at one of the largest law firms in the world, an elite real estate boutique in Aspen, Colorado and a highly regarded firm based in Denver, Colorado, before starting my own practice in 2016. Since 2016 I've been helping my clients with real estate and business deals. I'm a commercial real estate and business expert with a passion for helping clients forge successful ventures in an efficient and understandable manner.
"David was very informative during our initial call, and helped me understand the scope of work that my project needed depending on how many legal avenues I wanted addressed and covered. The work he provided was detailed and completed by the deadline that he provided."
April 1, 2023
Conner H.
Patent attorney with master's in electrical engineering and biglaw experience.
April 17, 2023
Andrew M.
Business Venture Law: Andrew Moore, Esq. focuses on solving modern business problems with common sense at affordable rates.
June 16, 2023
Winslow W.
Experienced telecommunications, software and SaaS contracts attorney with past litigation experience available to review, negotiate and analyze contracts for business of all sizes.
July 2, 2023
Suzanne E.
I have been an attorney for 30 years. I am a Colorado native with many years in Alaska. I have a Bachelors in Biology, Chemistry and French, JD from Seattle University and Masters in Environmental Science and Law from Vermont Law School. I have traveled extensively, mostly in Europe, and speak several languages with more or less proficiency. I practiced law in Alaska and Colorado, much of it in remote areas but also large cities. I have taught in an environmental masters program and run large environmental nonprofits and a hot springs resort. I have worked with and run business incubators, a process I love. Empowering people to build their own futures is a passion.
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Reply From Allen L.
Thank you for the kind words — I'm glad the employment contract review gave you what you needed. Best of luck moving forward, and feel free to reach out again if anything else comes up. Allen
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Employment
Employment Contract
Washington
Can my employer change the terms of my employment contract without my consent?
I have been working for a company for the past three years, and my employment contract clearly outlines my job responsibilities, salary, and benefits. However, recently my employer informed me that they are planning to make changes to my contract, including reducing my salary and removing certain benefits. I am concerned about the legality of these changes and whether my employer can modify the terms of my contract without my consent.
Merry K.
I'm sorry to hear about this proposed change. Whether or not your employer can make such changes unilaterally depends almost entirely on how your contract is written. For example, if your contract clearly states that you are an "at will" employee, your employer can not only make whatever changes it wants, but can also discipline you or terminate you with no reason at all and only a one second advance notice. If it's not an "at will" contract, there may be a paragraph or two that addresses amendments to the agreement - eg, some such contracts may say that an employer can make changes with two weeks advance written notice; another may say that changes will be negotiated in advance between employer and employee. You may want to have an employment attorney, such as myself, review your contract as well as any recent correspondence you may have received from your employer. You may also want to try to very quietly try to find out whether or not other employees are possibly in the same boat as you - it's possible that the employer is cutting back on some benefits to save money, rather than laying off or terminating some or all of their employees. Good luck to you - and if you'd like to reach out to me, you can find me through ContractsCounsel.com or on WSBA.org Please be aware that the above information is provided for educational purposes only, and no attorney/client relationship has been formed Merry A. Kogut WSBA #16153
Employee Rights
Employment Contract
New York
Can an employer change the terms of employee benefits without providing notice or obtaining consent?
I work for a small company that has recently made some changes to our employee benefits package without any prior notice or consultation with the employees. The changes include reducing the amount of paid time off, increasing the employee contribution for health insurance, and eliminating certain retirement benefits. I am concerned about the legality of these changes and whether the employer has the right to alter the terms of our benefits without providing any notice or obtaining our consent.
Damien B.
If you have an employment contract, the employer must adhere to the terms of that agreement. Similarly, if the company has an employee handbook, changes to benefits must align with the policies outlined therein. Courts may consider an employee handbook as a binding contract if it creates an expectation of certain benefits. If your benefits are guaranteed in a written contract or employee handbook and the employer did not follow proper procedures to make changes, you may have a claim for breach of contract. Employers are generally encouraged to provide clear communication and advance notice of benefit changes to maintain trust and compliance with legal and policy obligations. If you have any further questions, feel free to reach out.
Labor
Employment Contract
Georgia
I was recently let go after complaining about discrimination and targeted. I was termed with a severance package. I want to know if I can renegotiate the severance.
Can I get more on my severance since I was let go after complaining about discrimination to my employer?
Donya G.
That sounds like it would depend on the reasons you were given for being let go. Did you document your grievances in an email or where they just done by word of mouth? You should consult with a GA attorney that specializes in employment law to assit. All the best Donya Gordon
Employment
Employment Contract
Georgia
Can a company withhold a performance bonus if I leave before the payout date?
I recently resigned from my job, and in my employment contract, there was a provision for a performance bonus to be paid out at the end of the year. However, the payout date is a few months away, and I am concerned that the company may try to withhold the bonus since I am no longer employed with them. I want to know if they have the legal right to do so, or if I am still entitled to receive the bonus based on my performance during my time of employment.
Jerome L.
This is a great—and very common—question. Whether the company can legally withhold your performance bonus after resignation depends heavily on how your employment agreement is written and how the bonus is classified. Key Factors to Consider: 1. Is the Bonus Discretionary or Earned? If your contract defines the bonus as discretionary, the employer generally has the right to decide whether to pay it and can condition it on continued employment. If the bonus is based on meeting specific performance goals or metrics, and those have been satisfied, it may be considered earned—even if the payment date is in the future. 2. Does the Contract Require You to Be Employed on the Payout Date? Many agreements include language stating the employee must be actively employed on the bonus payout date. If such a clause exists, the company may be within its rights to withhold the bonus, even if the performance was completed. 3. What Is the Bonus Period? If your bonus was based on a performance period that has already ended (such as a calendar or fiscal year), and you met your goals, you may have a stronger case for claiming the bonus as earned compensation. Georgia-Specific Note: In Georgia, employment is at-will, and courts generally uphold the terms of a written employment agreement. However, Georgia courts have also recognized that earned wages (which can include bonuses if not discretionary) must be paid. If the bonus is performance-based and the company has paid similar bonuses under the same conditions in the past, you may have grounds to assert that the payment is owed. What You Can Do: Review your employment agreement and any bonus policy documents closely. Look for phrases like “discretionary,” “earned,” and “must be employed on the payout date.” If the language is unclear, you may want to consult an attorney to evaluate whether the company is legally permitted to withhold the bonus—or if you may have a claim based on how the bonus was structured and earned. If you would like help reviewing your agreement, I’d be happy to assist.
Employment
Employment Contract
North Carolina
What's termination notice in an employment contract?
I recently accepted a job offer with a new company and I was given an employment contract to sign. I was looking through the contract and noticed that it mentions something about a termination notice. I'm not sure what this means or how it applies to my employment, so I wanted to ask a lawyer to get a better understanding of this clause.
Ryan D.
A termination notice is a provision in an employment contract that specifies the amount of notice an employer must give an employee if they wish to terminate the contract, or vice versa if the employee wishes to leave. This is an important clause, as it offers some level of job security for the employee and some level of predictability for the employer. In most states, including North Carolina, employment is considered "at-will" unless there is a contract in place that states otherwise. This means that either the employer or the employee may terminate the employment relationship at any time, for any reason, or for no reason at all, as long as the reason isn't illegal (like discrimination). If your contract includes a termination notice clause, this "at-will" status is likely modified to some extent. The specific details would depend on the exact wording in your contract. It could require either party to provide a notice (often 2 weeks, 1 month, or sometimes longer) before terminating the contract. That notice period is intended to give the other party time to adjust plans accordingly. For the employee, it might mean finding a new job; for the employer, it might mean finding a replacement.
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