Growing your business to 25 employees is a big accomplishment. It shows your business is gaining momentum, but it also changes how you need to think about workplace compliance. Many Colorado employers discover that certain laws, reporting requirements, and HR practices become more complex once their team reaches this size.

We’ve seen business owners blindsided by regulations—not because they weren’t committed to doing things right, but because they didn’t realize the rules had shifted.

Common Compliance Traps for Businesses with Over 25 Employees

While many employment laws kick in at 15 (like federal anti-discrimination rules) or 50 (like ACA and FMLA), businesses in the 25+ range still face new risks and complexity that shouldn’t be overlooked. Some of the most common traps include:

• Wage Transparency and Pay Equity Requirements
  Colorado’s Equal Pay for Equal Work Act requires certain postings and pay disclosures. With more employees and more positions, the risk of non-compliance increases—especially around promotions, job postings, and internal pay equity audits.
• Leave Law Complexity
  The Healthy Families and Workplaces Act of Colorado applies to nearly all employers, but with larger teams, administering it consistently becomes much harder. Errors in tracking or applying leave policies can lead to costly disputes.
• Workplace Safety Oversight
  Once your workforce grows, OSHA inspections and reporting obligations become more likely. Employers may have to post the OSHA 300 A depending on their industry, etc.
• Employee Relations and Documentation
  A team of 25 often means layers of managers, new hires, and terminations happening more regularly. Without strong HR systems, gaps in documentation, corrective action, or policy enforcement can leave the business exposed to legal claims.
• Benefits Administration
  Even before ACA requirements at 50 employees, more team members bring more benefits complexity—eligibility tracking, COBRA continuation, and nondiscrimination testing can all create headaches if not handled correctly.

Real Lessons from Employers

We’ve worked with Colorado companies that grew quickly without realizing how much their risk profile had shifted. One employer learned during a Colorado Department of Labor inquiry that their sick leave tracking system was inconsistent across departments. The business thought they were compliant, but ended up owing back pay to several employees, something that could have been prevented with an early compliance review.

Why This Stage Matters

With 25+ employees, you may not be subject to every large-employer law yet, but you are at the stage where legal risks increase, and state-specific rules demand more attention. Compliance can feel like a hurdle, but when approached proactively, it becomes a growth trigger:

• Strong policies build employee trust.
• Documented systems reduce disputes.
• Proactive compliance saves time and money long-term.

Take the Next Step

If your Colorado business is approaching—or has recently passed—the 25-employee mark, this is the perfect time to pause and make sure your compliance is keeping up with your growth. Schedule a consultation today to review your compliance strategy and protect your business as it scales.