Skip to content
Oakclause

Independent Contractor Test in Colorado

Colorado uses a two part test for both wage law and unemployment insurance: a worker is an employee unless free from control and direction and customarily engaged in an independent trade or business.

Last checked . General information, not legal advice.

Colorado at a glance

Test for wage and hour law
Two part test: control and independent business
Relevant factors include control and whether the person does the employer's primary work.
ABC test for wage law
No
Test for unemployment insurance
Two part test: control and independent business
A signed written document with the required disclosure creates a rebuttable presumption of contractor status.
ABC test for unemployment
No

Sources

Last checked

The rules in Colorado

Which test does Colorado use to classify independent contractors under its wage and hour laws?

Test for wage and hour law in Colorado: Two part test: control and independent business. Relevant factors include control and whether the person does the employer's primary work.

Does Colorado apply the ABC test under its wage and hour laws?

No. ABC test for wage law in Colorado: no.

Which test does Colorado use to classify independent contractors for unemployment insurance?

Test for unemployment insurance in Colorado: Two part test: control and independent business. A signed written document with the required disclosure creates a rebuttable presumption of contractor status.

Does Colorado apply the ABC test for unemployment insurance?

No. ABC test for unemployment in Colorado: no.

Where do the Colorado independent contractor tests come from?

The rules above come from Colo. Rev. Stat. 8-4-101(5) and Colo. Rev. Stat. 8-70-115(1)(b). Each source is linked on this page. We last checked them in October 2026.

What this means in practice

Write down how the working relationship actually operates: who sets the hours, who supplies tools, whether the worker serves other clients and whether the work is part of the business's usual line of work. These facts drive every classification test, and a written independent contractor agreement helps only if it matches them.

Check each law separately. A worker can be a contractor under one statute and an employee under another, because wage laws, unemployment insurance, workers' compensation and tax rules may each use their own test. Federal law also applies its own tests alongside the state rules.

Misclassification can lead to back wages, unpaid unemployment contributions, interest and penalties. If a role is close to the line, read the statute and agency guidance for the state where the work is performed, or ask the state labor or unemployment agency how it applies its test.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.