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New 2026 Colorado Recordkeeping Requirements

By Jacqueline Talbot posted yesterday

  

With a new year comes new regulations that codify practices you may already be doing.  Effective February 1, 2026, the Colorado Overtime Minimum Pay Standards “COMPS” regulations and new Youth Employment Standards “YES” rules suggest and require certain recordkeeping.

COMPS Order #40 (7 CCR 1103-1)

All covered Colorado employers must retain an updated record for each employee of the following:

  • vacation pay hours accrued, used, and available for use during the current benefit year

  • HFWA or sick leave hours accrued, used, and available for use during the current benefit year (if tracked separately from vacation hours).

No more than once a month, upon request, employers must provide an employee with an updated itemized statement of the earned/used/available vacation and HFWA/sick leave hours. While not mandatory to provide this information without a request, practicality would indicate that Employers should choose a reasonable system for fulfilling such requests on a regular basis, including but not limited to listing such information on each pay stub, using an electronic system where employees can access their own information, or providing the necessary information in a letter or electronic communication.

Employers who outsource payroll and timekeeping should verify that their service vendors comply with these requirements.

For employers that use PTO banks to provide employees with vacation and sick time, the COMPS order does not explicitly address requirements. However, it is essential to track all earned/used/available PTO hours for each employee and to comply with the notification request requirements outlined in the order.

Colorado Youth Employment Standards “Yes” (7 CCR 1103-20)

These new rules surrounding employment of minors also include recordkeeping requirements, although not regular distribution of records.

An employer must retain a true and accurate record for each minor, including the date of birth for minors under 18 years of age, as already required separately by the COMPS Order (Rule 7.1).

An employer must now retain a copy of the following records for three years after the minor’s eighteenth birthday or three years after the termination of employment, whichever is sooner:

  • Any exemption from the child Labor statutes deemed to be in the best interests of the minor under C.R.S. § 8-12-104;

  • Any documents supporting use of the exception to the prohibition of hazardous work by minors, C.R.S. § 8-12-110(1), including proof of completion of or enrollment in a qualifying program;

  • Any age certificate and any other documents under C.R.S. § 8-12-111;

  • Any proof of a high school diploma, a passing score on the general educational development examination, completion of a career and technical education program, or any other documents under C.R.S. § 8-12-112,

  • Any school release permit and other documents under C.R.S. § 8-12-113.

All of these documents must be made available to the Division upon request. This rule does not restrict the CDLE’s authority to obtain any other additional documents and information from any employer.

Where a claim, complaint, or investigation under the child labor statutes has been filed or commenced, an employer must preserve all relevant documents throughout the duration of the investigation and until the expiration of the statutory period for the claim. Should an employer find themselves in this position, Employers Council can advise members on how to respond.

For training on recordkeeping practices, Employers Council offers the class Recordkeeping for HR; members are encouraged to access our Employee File Management whitepaper and to contact us for assistance.

Jacqueline Talbot, aPHR,  is a Paralegal with Employers Council

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