Severance in Colorado
Coloradoseverance & layoff calculator
State law shapes how much of your severance you keep, when you can collect unemployment, and whether your employer owed you advance notice. Here’s what applies in Colorado.
- Top marginal tax
- 4.40%
- WARN Act
- Federal WARN only
- Unemployment max
- $781 / week
- PTO payout
- Required by law
- Right to work
- No
- Notes for Colorado
- Worth knowing
Severance is taxed at your state's top marginal rate when it pushes you into that bracket.
Colorado doesn't have a state mini-WARN, so federal rules apply: 100+ employees, 60 days' notice.
Up to 26 weeks. Unemployment insurance is reduced or offset while severance is paid; you can typically collect a partial benefit.
Colorado requires accrued, unused PTO to be paid out at separation regardless of your employment agreement.
Non-right-to-work; union representation may be relevant to severance and grievance procedures.
Earned vacation must be paid out at separation (Nieto v. Clark’s Market).
Sources: state department of labor, state department of revenue, and the U.S. Department of Labor ETA. Last verified: 2026-04.
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Estimates based on public data and industry benchmarks. Not legal advice.