Colorado employment contract template
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How Colorado employment contract Differ from Other States
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Colorado enforces strict at-will employment, allowing termination by either party at any time unless a contract states otherwise.
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Non-compete clauses are highly restricted in Colorado, especially for lower-wage workers, compared to some other states.
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Colorado requires employers to comply with unique state laws regarding paid sick leave and disclosure of pay rates in contracts.
Frequently Asked Questions (FAQ)
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Q: Is an employment contract required by law in Colorado?
A: No, employment contracts are not required, but written agreements may offer clearer protection for both employer and employee.
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Q: Are non-compete agreements enforceable in Colorado?
A: Non-compete agreements are generally unenforceable, except for high-level executives or in cases involving trade secrets.
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Q: What should a Colorado employment contract include?
A: Key elements: job duties, compensation, duration, termination terms, benefits, confidentiality, and compliance with Colorado labor laws.
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Colorado Employment Contract
This Employment Contract (the “Agreement”) is made and entered into as of [Date], by and between [Legal Business Name], a [State] [Entity Type] with its principal place of business at [Business Address] (“Employer”), and [Employee's Full Legal Name], residing at [Employee's Address] (“Employee”).
1. Employment
- Job Title, Department, Reporting Structure:
- Option A: Employee shall be employed as [Job Title] in the [Department] department and will report to [Supervisor Name], [Supervisor Title].
- Option B: Employee shall be employed as [Job Title] and will report directly to the [CEO/President].
- Job Description and Key Duties:
- Option A: The Employee's duties and responsibilities shall include, but not be limited to, those described in Exhibit A attached hereto. Employer may modify these duties as needed.
- Option B: The Employee's primary responsibilities include [List of Key Duties]. Employer may modify these duties as needed.
- Primary Work Location:
- Option A: Onsite at [Business Address].
- Option B: Remote. Employee will work remotely.
- Option C: Hybrid. Employee will work both onsite at [Business Address] and remotely, according to a schedule determined by the Employer.
- Option D: Multi-site. Employee may be required to work at various locations as needed.
- Employment Classification:
- Option A: Full-time.
- Option B: Part-time.
- Option C: Temporary. The employment will be for a fixed term ending on [Date].
- Option D: Seasonal.
- Option E: Contract.
- FLSA Exemption Status:
- Option A: Exempt from overtime pay requirements under the Fair Labor Standards Act.
- Option B: Nonexempt from overtime pay requirements under the Fair Labor Standards Act.
- Probationary Period:
- Option A: Employee's employment will be subject to a [Number] day probationary period, commencing on the Effective Date.
- Option B: There is no probationary period.
2. Employment Term
- At-Will Employment:
- Option A: Employee's employment is at-will. Either party may terminate the employment relationship at any time, with or without cause or notice, subject to applicable law. This at-will status does not affect Employee's rights under Colorado law.
- Notice Requirement (Optional): While not required, Employer requests [Number] days written notice of resignation.
- Exceptions: Nothing in this Agreement limits Employer's ability to terminate employment for lawful reasons.
- Option A: Employee's employment is at-will. Either party may terminate the employment relationship at any time, with or without cause or notice, subject to applicable law. This at-will status does not affect Employee's rights under Colorado law.
- Fixed-Term Employment (If applicable; otherwise, omit):
- Option A: This Agreement shall commence on [Start Date] and shall continue until [End Date], unless sooner terminated as provided herein.
- Renewal: This Agreement is not automatically renewable. Any renewal shall be in writing and mutually agreed upon.
- Conversion to At-Will: Upon expiration of the fixed term, the employment may, at Employer's sole discretion, convert to at-will employment.
- Extension or Termination: The Agreement may be extended or terminated prior to the end date under the following conditions: [Conditions].
- Option A: This Agreement shall commence on [Start Date] and shall continue until [End Date], unless sooner terminated as provided herein.
3. Compensation and Benefits
- Base Wage/Salary:
- Option A: Employee shall be paid a salary of [Amount] per [Year/Month/Pay Period].
- Option B: Employee shall be paid an hourly rate of [Amount] per hour.
- Pay Schedule:
- Option A: Employee will be paid [Weekly/Biweekly/Monthly].
- Option B: Employee will be paid on [Day of the Week/Date].
- Overtime Compensation (For Non-Exempt Employees):
- Option A: For each hour worked over 40 hours in a workweek or 12 hours in a workday, Employee shall be paid overtime compensation at a rate of one and one-half (1.5) times their regular hourly rate, as required by Colorado law.
- Pay Method:
- Option A: Direct Deposit.
- Option B: Check.
- Commission or Bonus:
- Option A: Employee is eligible to participate in the Employer's commission plan, as detailed in Exhibit B attached hereto.
- Option B: Employee is eligible to receive a discretionary bonus, as determined by the Employer.
- Calculation and Payment: Bonuses will be calculated [How] and paid [When].
- Deductions:
- Option A: All legally required deductions will be withheld from Employee's pay.
- Option B: Employee authorizes the following deductions: [List of Deductions].
- Benefits:
- Health Insurance:
- Option A: Employee is eligible to participate in the Employer's health insurance plan, subject to the plan's terms and conditions. Waiting period: [Number] days.
- Dental Insurance:
- Option A: Employee is eligible to participate in the Employer's dental insurance plan, subject to the plan's terms and conditions. Waiting period: [Number] days.
- Vision Insurance:
- Option A: Employee is eligible to participate in the Employer's vision insurance plan, subject to the plan's terms and conditions. Waiting period: [Number] days.
- Retirement Plan (e.g., 401(k)):
- Option A: Employee is eligible to participate in the Employer's 401(k) plan, subject to the plan's terms and conditions. Employer matching contribution: [Percentage].
- Life Insurance:
- Option A: Employee is eligible for life insurance coverage as provided by the Employer.
- Disability Insurance:
- Option A: Employee is eligible for short-term and/or long-term disability insurance coverage as provided by the Employer.
- Paid Holidays:
- Option A: Employee is entitled to the following paid holidays: [List of Holidays].
- Vacation/PTO:
- Option A: Employee accrues vacation time at a rate of [Number] hours per [Pay Period/Month], subject to Employer's PTO policy.
- Sick Leave:
- Option A: Employee is entitled to paid sick leave under Colorado's Healthy Families and Workplaces Act. Accrual is based on hours worked.
- Family and Medical Leave:
- Option A: Employee is eligible for leave under the Family and Medical Leave Act (FMLA) and the Colorado Family Care Act, subject to eligibility requirements.
- Parental Leave:
- Option A: Employee is eligible for parental leave under Colorado law, subject to eligibility requirements.
- Jury Duty and Other Leave Types:
- Option A: Employee is entitled to leave for jury duty and other legally required leave types.
- Stock/Equity Compensation:
- Option A: Employee is eligible to participate in the Employer's stock option plan, as detailed in Exhibit C attached hereto.
- Health Insurance:
- Benefit Modification/Termination: Employer reserves the right to modify or terminate any benefit plan at any time, subject to applicable law.
4. Workplace Standards
- Working Days and Hours:
- Option A: Employee's standard work schedule is [Days of the Week], from [Start Time] to [End Time].
- Option B: Employee may be required to work flexible hours or shifts as needed.
- Meal and Rest Breaks:
- Option A: Employee is entitled to a [Number]-minute unpaid meal break and a [Number]-minute paid rest break during each [Number]-hour work period, in accordance with Colorado law.
- Overtime Approval:
- Option A: All overtime work must be approved in advance by [Supervisor Name/Title].
- Punctuality:
- Option A: Employee is expected to be punctual and adhere to the established work schedule.
- Dress Code:
- Option A: Employee is expected to adhere to the Employer's dress code, as outlined in the Employee Handbook.
- Option B: Business Casual.
- Workplace Conduct:
- Option A: Employee is expected to maintain a professional and respectful demeanor in the workplace.
- Anti-Harassment:
- Option A: Employer maintains a strict anti-harassment policy. Harassment of any kind will not be tolerated. See the Employee Handbook for details.
- Use of Company Property:
- Option A: Employee is authorized to use company property (vehicles, computers, phones) solely for business purposes.
- Mandatory Training:
- Option A: Employee is required to complete the following mandatory training programs: [List of Training Programs].
5. Confidentiality and Intellectual Property
- Protection of Trade Secrets and Proprietary Information:
- Option A: Employee acknowledges that during their employment, they will have access to confidential and proprietary information of the Employer, including, but not limited to: [List of Examples: e.g., customer lists, pricing information, marketing strategies].
- Scope: This obligation extends to all information not generally known to the public.
- Duration: This obligation continues indefinitely, even after termination of employment.
- Exceptions: This obligation does not apply to information that is publicly available or that Employee is legally required to disclose.
- Post-Employment Obligations: Upon termination of employment, Employee shall return all confidential and proprietary information to the Employer.
- Option A: Employee acknowledges that during their employment, they will have access to confidential and proprietary information of the Employer, including, but not limited to: [List of Examples: e.g., customer lists, pricing information, marketing strategies].
- Intellectual Property Ownership:
- Option A: All inventions, discoveries, and works of authorship created by Employee during their employment, within the scope of their duties, shall be the sole property of the Employer.
- Option B: Employee acknowledges and agrees to assign all rights to any Intellectual Property created during employment to the Employer.
- Prior Inventions (Optional): Employee represents that Exhibit D lists all inventions made by Employee prior to the commencement of their employment with Employer that Employee wishes to exclude from this agreement.
- Assignment of Rights:
- Option A: Employee agrees to execute any documents necessary to assign ownership of such intellectual property to the Employer.
6. Restrictive Covenants
- Non-Solicitation:
- Option A: During employment and for a period of [Number] months following termination, Employee shall not solicit any customers or employees of the Employer.
- Option B: (Omit this entire section if no non-solicitation clause is desired).
- Scope: This restriction applies to [Geographic Area/Specific Clients].
- Non-Servicing:
- Option A: During employment and for a period of [Number] months following termination, Employee shall not provide services to any customers of the Employer with whom Employee had direct contact during the [Number] months preceding termination.
- Option B: (Omit this entire section if no non-servicing clause is desired).
- Scope: This restriction applies to services directly competitive with those offered by the Employer.
- Non-Compete (Use CAUTIOUSLY and only if Employee is "Highly Compensated" as defined by Colorado law and the agreement fits within the narrow exceptions allowed under C.R.S. § 8-2-113):
- Option A: During employment and for a period of [Number] months following termination, Employee shall not engage in any business that competes with the Employer within a [Geographic Area] area.
- Scope: This restriction applies to [Specific Activities].
- Option B: (Omit this entire section if no non-compete clause is desired).
- Highly Compensated Worker: Employee acknowledges they meet the definition of a "highly compensated worker" under Colorado law at the time of signing this agreement.
- Colorado Law Requirements: Employee acknowledges that this non-compete agreement is only enforceable to the extent allowed by C.R.S. § 8-2-113 and other applicable Colorado law.
- Option A: During employment and for a period of [Number] months following termination, Employee shall not engage in any business that competes with the Employer within a [Geographic Area] area.
- Reasonableness Acknowledgment: Employee acknowledges that the restrictions in this Section are reasonable in geographic scope, time, and activity and are necessary to protect the Employer's legitimate business interests.
7. Termination
- Grounds for Termination:
- Option A: Employer may terminate Employee's employment for cause. Cause includes, but is not limited to: [List Examples: e.g., misconduct, negligence, violation of company policy].
- Option B: As employment is at-will, Employer may terminate Employee's employment at any time, with or without cause, subject to applicable law.
- Resignation:
- Option A: Employee shall provide [Number] days written notice of resignation.
- Option B: Employee shall submit a written resignation to [Supervisor Name/Title].
- Severance/Final Payment:
- Option A: Upon termination, Employee shall receive all earned but unpaid wages.
- Option B: Employee shall receive severance pay as detailed in Exhibit E.
- Accrued but Unused Leave:
- Option A: Accrued but unused vacation time will be paid out upon termination, as required by Colorado law.
- Continuation of Benefits (COBRA):
- Option A: Employee will be offered the opportunity to continue health insurance coverage under COBRA, subject to eligibility requirements.
- Post-Employment Obligations:
- Option A: Upon termination, Employee shall return all company property.
- Option B: Employee's obligations under the Confidentiality and Intellectual Property Section shall survive termination.
- Exit Interview:
- Option A: Employee may be required to participate in an exit interview.
8. Dispute Resolution
- Internal Complaint Procedure:
- Option A: Employee agrees to first attempt to resolve any disputes internally, by following the Employer's established complaint procedure.
- Mediation/Arbitration:
- Option A: Any disputes arising out of or relating to this Agreement shall be submitted to mediation in [City, State] before resorting to litigation.
- Option B: Any disputes arising out of or relating to this Agreement shall be resolved by binding arbitration in [City, State], in accordance with the rules of the American Arbitration Association.
- Option C: Any disputes arising out of or relating to this agreement shall be resolved by court litigation.
- Governing Law and Forum:
- Option A: This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado. The forum for any disputes shall be the state or federal courts located in [County, Colorado].
9. Workers' Compensation
- Coverage: Employer maintains workers' compensation insurance coverage for work-related injuries.
- Reporting: Employee must report any work-related injury or illness to [Supervisor Name/Title] immediately.
- Insurer: The Employer's workers' compensation insurance carrier is [Insurance Company Name].
- Compliance: Employer complies with all applicable Colorado workers' compensation laws.
10. Workplace Safety and Health
- Compliance: Employer is committed to providing a safe and healthy work environment in compliance with Colorado and federal OSHA standards.
- Employee Responsibilities: Employee is responsible for following all safety rules and regulations.
- Whistleblower Protections: Employee has the right to report safety concerns without fear of retaliation.
11. Equal Employment Opportunity and Anti-Discrimination
- Compliance: Employer is an equal opportunity employer and complies with all applicable federal and Colorado state anti-discrimination laws, including Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), the Age Discrimination in Employment Act (ADEA), the Family and Medical Leave Act (FMLA), the Genetic Information Nondiscrimination Act (GINA), and the Colorado Anti-Discrimination Act (CADA).
- EEO Policy: Employer's equal employment opportunity policy prohibits discrimination based on race, color, religion, sex (including pregnancy, sexual orientation, and gender identity), national origin, age (40 or older), disability, genetic information, or any other characteristic protected by law.
- Anti-Harassment: Employer maintains a strict anti-harassment policy. Harassment of any kind will not be tolerated.
- Reasonable Accommodation: Employer will provide reasonable accommodations to qualified individuals with disabilities, as required by law.
12. Mandatory Notices
- Pay Notice: Employee will receive a written pay notice with each paycheck, as required by Colorado law.
- Unemployment Compensation Rights: Employee has the right to file a claim for unemployment benefits if their employment is terminated.
13. Employee Handbook/Company Policies
- Acknowledgment: Employee acknowledges receipt of the Employer's Employee Handbook and agrees to abide by its policies and procedures.
14. Other Provisions
- Background Check/Drug Testing (Optional):
- Option A: Employee's employment is contingent upon successful completion of a background check and/or drug test.
- Acknowledgment of Receipt of Legal Notices (Optional):
- Option A: Employee acknowledges receipt of all required legal notices.
- Integration/Merger: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether oral or written, relating to the subject matter hereof.
- Waiver: No waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom the waiver is sought to be enforced.
- Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
- Assignment: This Agreement may not be assigned by Employee without the prior written consent of Employer.
- Modification/Amendment: This Agreement may be modified or amended only by a written instrument signed by both parties.
- Rights to Counsel Review: Employee acknowledges they have the right to consult with an attorney regarding this Agreement before signing it.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
Employer:
[Legal Business Name]
By: [Name]
Title: [Title]
Date: [Date]
Employee:
[Employee's Full Legal Name]
Signature:
Date: [Date]
Exhibits (Optional):
- Exhibit A: Job Description
- Exhibit B: Commission Plan
- Exhibit C: Stock Option Plan
- Exhibit D: Prior Inventions
- Exhibit E: Severance Details