(650) 332-8623Prevailing Wage in Colorado: a Guide to Rules, Requirements, Rates, and More for 2025
Learn everything about Colorado’s prevailing wage laws for 2025, including rules, rates, employer responsibilities, and compliance tips.
Prevailing wage laws in Colorado make sure workers on public projects get fair pay. These laws are important for both workers and employers because they affect wages, project costs, and compliance with Colorado labor law. Knowing these rules helps businesses stay on track and ensures workers are paid fairly.
This guide explains Colorado’s prevailing wage laws, how they work, and what they mean for 2025.
By the end, you’ll understand:
- What Colorado’s prevailing wage laws include
- How the wages are set and why they matter
- How businesses can follow the rules
The Colorado Department of Labor and Employment (CDLE), through its Division of Labor Standards and Statistics, enforces prevailing wage laws. It ensures compliance by reviewing certified payroll records, monitoring contractor reports, and investigating wage complaints.
The Colorado Department of Personnel and Administration (DPA) is responsible for setting prevailing wage rates for state-funded projects, based on local labor market conditions and union agreements.
For state-managed projects, the Office of the State Architect (OSA) ensures contractors meet wage and reporting requirements
The Legal Framework for Prevailing Wages in Colorado
Colorado’s prevailing wage laws are part of Colorado labor law and are governed by the Colorado Quality Apprenticeship Training Act of 2019 (C.R.S. § 24-92-201 et seq.). These laws are also linked to the federal Davis-Bacon Act.
They apply to public projects funded by state or local governments, such as building construction, repairs, or other public improvements.
The rules cover many workers, including laborers, mechanics, and apprentices, ensuring they receive fair pay and benefits. Contractors and subcontractors must comply with wage reporting and other requirements to follow these laws.
Understanding Colorado Prevailing Wage Laws
C.R.S. § 24-92-201 et seq.
Colorado's Primary Prevailing Wage Law
Colorado’s prevailing wage laws are governed by the Colorado Quality Apprenticeship Training Act of 2019 (C.R.S. § 24-92-201 et seq.). This law outlines wage requirements for contractors and subcontractors working on public projects funded by the state. It aims to ensure fair pay for workers based on prevailing local wages.
The statute applies to public projects such as construction, repairs, or demolition of buildings, roads, and other structures that promote public health, safety, or welfare.
2021
When Did Colorado's Prevailing Wage Law Take Effect?
Colorado’s original prevailing wage law was enacted in 1933 but was repealed in 1985. The state reintroduced prevailing wage protections under the Colorado Quality Apprenticeship Training Act of 2019, which became effective on July 1, 2021. These laws expand wage protections for workers on state-funded public projects and complement the federal Davis-Bacon Act.
C.R.S. Title 8, Article 17 and C.R.S. § 24-92-301 et seq.
Additional Colorado Prevailing Wage Statutes
Keep Jobs in Colorado Act (C.R.S. Title 8, Article 17)
This statute prioritizes local labor for public projects, requiring contractors to hire Colorado residents where possible. It strengthens prevailing wage compliance by expanding coverage to more state-funded projects and ensuring proper worker classification as employees, not contractors.
Energy Sector Public Works Craft Labor Requirements Act (C.R.S. § 24-92-301 et seq.)
This law applies prevailing wage rules to energy sector projects, including power generation and transmission, with contracts over $500,000. It also mandates certified apprenticeship programs and requires contractors to submit payroll and labor certifications regularly. The act ties fair wages to clean energy goals.
These statutes broaden prevailing wage protections, ensuring fair pay across more industries and project types in Colorado.
CDLE
Colorado Department of Labor and Employment is Responsible for Enforcing Prevailing Wage in Colorado
The Colorado Department of Labor and Employment (CDLE), through its Division of Labor Standards and Statistics, enforces prevailing wage laws. It ensures compliance by reviewing certified payroll records, monitoring contractor reports, and investigating wage complaints.
The Colorado Department of Personnel and Administration (DPA) is responsible for setting prevailing wage rates for state-funded projects, based on local labor market conditions and union agreements.
For state-managed projects, the Office of the State Architect (OSA) ensures contractors meet wage and reporting requirements.
$500,000
What's the Minimum Value of Projects Covered by Prevailing Wage Laws in Colorado?
Colorado’s prevailing wage laws apply to public projects valued at $500,000 or more. For energy sector projects, additional apprenticeship and wage requirements apply to contracts of $1 million or more. Contractors must ensure compliance by paying the prevailing wage rates for the job type and geographic location.
Colorado Prevailing Wages for Common Roles
$32.98Asbestos Worker/Insulator Base Wages (Statewide)
Asbestos workers and insulators earn a base wage of $32.98/hour for work on mechanical systems, including insulation and protective coatings.
$16.47Asbestos Worker/Insulator Fringe Benefits (Statewide)
Fringe benefits include health and welfare, pension, and training, totaling $16.47/hour.
All-in rate: $49.45/hour.
$35.10Carpenter Base Wages (Denver County)
Carpenters specializing in drywall hanging and framing earn a base wage of $35.10/hour in Denver County.
$13.41Carpenter Fringe Benefits (Denver County)
Fringe benefits for carpenters include health insurance and pension contributions, adding up to $13.41/hour.
All-in rate: $48.51/hour
$43.20Electrician Base Wages (Arapahoe County)
Electricians performing both high and low-voltage wiring earn $43.20/hour in Arapahoe County.
$18.38Electrician Fringe Benefits (Arapahoe County)
Fringe benefits for electricians total $18.38/hour, including pension and healthcare.
All-in rate: $61.58/hour
$37.23Ironworker Base Wages (Statewide)
Structural and reinforcing ironworkers earn a base wage of $37.23/hour statewide, reflecting their specialized skills in construction.
$12.50Ironworker Fringe Benefits (Statewide)
Fringe benefits for ironworkers include health insurance and retirement plans, totaling $12.50/hour.
All-in rate: $49.73/hour
$54.20Elevator Mechanic Base Wages (Statewide)
Elevator mechanics earn the highest base wage of $54.20/hour statewide.
$37.89Elevator Mechanic Fringe Benefits (Statewide)
Fringe benefits include substantial pension contributions and holiday pay, totaling $37.89/hour.
All-in rate: $92.09/hour
Colorado Prevailing Wage Resources
Don’t see the role you’re looking for on our list?
Colorado’s Office of the State Architect (OSA) publishes prevailing wage determinations on its website – click the link in this sentence to check it out.
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Typical Fringe Benefits and Calculations
Most prevailing wage roles in Colorado include health insurance under the “Health and Welfare” fringe benefits. For example, fringe benefits for carpenters include $13.41/hour, a significant portion of which often covers health insurance.
Dental insurance is generally provided as part of the health and welfare benefits for prevailing wage roles. The fringe benefit allocations, such as $16.47/hour for asbestos workers, typically include dental insurance costs.
Vision insurance is included in some cases under the health and welfare fringe benefits, but the specific breakdown is not always detailed. Workers receiving health benefits (e.g., $18.38/hour for electricians) are likely to have access to vision insurance.
Paid Time Off is included for many roles in the form of holiday or vacation pay. For example, elevator mechanics receive paid holidays as part of their benefits package, contributing to a total fringe benefit of $37.89/hour.
Vacation pay is often part of the fringe benefits package. For instance, ironworkers have vacation included within their $12.50/hour fringe benefit rate, ensuring compensation for time off.
Training costs are included in fringe benefits for most roles, functioning as tuition reimbursement. For example, asbestos workers’ fringe benefits of $16.47/hour may include training allocations.
Prevailing wage laws in Colorado do not specify bonus payments as part of fringe benefits. These payments are not common under typical prevailing wage structures.
Pension contributions are a key component of fringe benefits. Electricians, for instance, receive $18.38/hour, with a significant portion allocated to pension plans.
There is no indication that Colorado’s prevailing wage laws include provisions for 401(k) employer contributions. Instead, pensions are the primary retirement benefit.
Employer Responsibilities in Colorado
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Employers must pay workers the prevailing wage rates set by the DPA.
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Keep detailed records of hours, wages, and benefits for all workers on public projects.
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Submit payroll reports to state agencies to ensure compliance and transparency.
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Ensure subcontractors follow prevailing wage laws and maintain proper records.
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Display wage rates at job sites to inform workers of their rights.
Penalties for Prevailing Wage Noncompliance
$25,000Willful Violation Penalty
Employers who willfully violate Colorado’s prevailing wage laws may face fines up to $25,000 for third and subsequent offenses. First offenses result in fines of $5,000, and second offenses are fined $10,000. These penalties ensure accountability and deter repeat violations.
Double Back WagesFailure to Pay Prevailing Wages
Employers found guilty of underpaying workers must pay the full amount of back wages owed, plus double the underpaid amount as damages, along with accrued interest. This ensures workers receive fair compensation.
DebarmentContracting Ban
Contractors with three or more willful violations in five years may be barred from bidding on public contracts for up to three years. This severe penalty aims to promote compliance among frequent offenders.
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Certified Payroll and Prevailing Wages in CO
Certified payroll is a crucial requirement for ensuring compliance with Colorado’s prevailing wage laws. It provides transparency and accountability by documenting wages paid, hours worked, and benefits provided to workers on public projects. These reports confirm that employees are paid correctly according to prevailing wage rates for their roles.
Certified payroll records create a clear audit trail that helps state agencies, like the CDLE, monitor adherence to wage laws. They are essential for resolving disputes, addressing wage theft claims, and maintaining trust among contractors, workers, and enforcement agencies.
To stay compliant, employers must submit certified payroll reports regularly to the appropriate state agency. Conducting internal reviews of payroll and compliance documents can help identify discrepancies early and ensure all records align with Colorado’s wage requirements.
For contractors facing challenges with certified payroll processes, seeking advice from labor compliance experts or legal counsel can help maintain compliance and avoid costly penalties.
Navigating Prevailing Wage Requirements in Colorado
Know Your Rights as a Worker
Workers on public projects in Colorado are entitled to the prevailing wage for their specific trade or role. Keep informed about the wage rates and fringe benefits applicable to your job. If you suspect wage violations, you can report them to the CDLE without fear of retaliation. Maintain accurate records of your hours and wages to safeguard against disputes or underpayment.
Know What to Do as an Employer
Employers must follow state prevailing wage laws by paying the correct rates and fringe benefits. Key responsibilities include:
- Maintaining detailed payroll records.
- Submitting certified payroll reports.
- Ensuring subcontractors comply with wage laws.
- Posting prevailing wage determinations visibly at job sites.
Regular training for payroll staff and supervisors on compliance requirements is essential. Employers should also audit records frequently to identify and resolve issues before they escalate.
Common Prevailing Wage Challenges for Employers in Colorado
- Complex Laws: Understanding and applying wage rules is time-consuming.
- Recordkeeping: Maintaining accurate payroll and compliance reports requires resources.
- Risk of Penalties: Noncompliance can lead to fines and debarment from public contracts.
- Wage Disputes: Worker complaints about pay discrepancies can disrupt projects.
- Worker Shortages: Finding skilled workers to meet project demands is challenging.
Prevailing Wage Solutions for Employers in Colorado
- Education and Training: Provide regular compliance training for staff and contractors.
- Use Technology: Invest in payroll software to simplify compliance and recordkeeping.
- Seek Expert Help: Work with labor law specialists or consultants to ensure compliance.
- Encourage Transparency: Clearly communicate wage rates and benefits to workers.
- Address Workforce Gaps: Partner with local unions or training programs to recruit skilled workers.
General Best Practices for Colorado Prevailing Wages
- Regularly review wage determinations to stay up-to-date with changes.
- Establish internal audits to identify and correct payroll errors.
- Build strong relationships with unions and community groups to access resources for compliance and workforce training.
- Ensure open communication with employees to address concerns proactively.
Looking for other prevailing wage and state-specific labor law guides? Check out these articles:
Final Thoughts
Understanding and complying with Colorado’s prevailing wage laws is essential for both workers and employers on public projects. By staying informed, maintaining accurate records, and addressing compliance challenges proactively, you can ensure fair compensation and avoid costly penalties.
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Colorado’s prevailing wage is the minimum hourly rate set for workers on public projects funded by state or local governments. These rates are determined by the Colorado Department of Personnel and Administration (DPA) and are based on wages commonly paid for similar jobs in the same region.
The prevailing wage includes base pay and fringe benefits, such as health insurance and pensions. It ensures fair compensation for workers and compliance with state labor laws, protecting both employees and contractors on public works projects.
The local prevailing wage is the standard hourly pay rate, including benefits, for specific jobs within a defined geographic area. It reflects the wages typically paid to workers in similar roles in that region and is often influenced by union agreements and market conditions. Local prevailing wages vary by location and job type and are used on public construction projects to ensure workers are fairly compensated according to regional standards.
California typically has the highest prevailing wage rates in the U.S., especially for construction roles. This is due to strong union influence, high living costs, and detailed wage-setting processes. For example, certain skilled trades like electricians and elevator mechanics in California earn significantly higher rates compared to other states. These rates are set by the California Department of Industrial Relations (DIR) to reflect local wage standards and ensure fair pay for workers on public projects.
The prevailing rate refers to the standard hourly wage, including benefits, paid to workers in a specific job or trade within a region. It is determined by analyzing wages commonly paid for similar roles in the area, often through union agreements or market surveys. This rate is typically used for public projects to ensure fair and consistent compensation for employees and to prevent undercutting in competitive bidding processes.
