Denver Public Schools and the teachers union will restart negotiations at 10 a.m. Tuesday.
Thousands of teachers did not report to schools Monday, instead protesting along picket lines and rallying at the state Capitol.
The strike will affect 71,000 students across 147 schools, and 5,353 teachers and specialized service providers.
DPS has said more than half of teachers surveyed in high priority schools said an incentive influenced their decision to stay.
Gov. Jared Polis is still encouraging teachers and Denver Public Schools to restart negotiations to avoid the strike.
When negotiations resumed last week, the wedge between the teacher's union and the district grew even larger.
The rejection of the school district’s latest offer comes after 14 months of contentious negotiations to overhaul the district’s pay and teacher incentive system.
Denver Public Schools district officials had requested the Colorado Department of Labor help prevent the strike.
A Denver teachers union official says it's unlikely a strike would start next week. That's because the teacher's union must wait for clearance from the state.
Educators with mortgages spend 40 percent, while teachers who rent spend 50 percent. Experts recommend that individuals spend no more than 30 percent on housing costs.