House Bill 25-1001 Revised

A Bill for an Act

• Page 1, Line 101Concerning the enforcement of wage and hour laws, and, in

• Page 1, Line 102connection therewith, making an appropriation.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)

Section 1 of the bill amends the definition of "employer" for purposes of wage and hour laws to include an individual who owns or controls at least 25% of the ownership interest in an employer.

Section 2 prohibits an employer from making a payroll deduction below a worker's applicable minimum wage.

Section 3 allows the director of the division of labor standards and statistics (division) to waive the penalty for an employer's failure to pay claimed wages or compensation within 14 days after a written demand if certain specified conditions are met.

Section 4 repeals language allowing a court to award an employer reasonable costs and attorney fees in a civil action for unpaid wages or compensation in certain circumstances. In such an action, the court may pursue all equitable relief to deter future violations and prevent unjust enrichment.

Current law limits the ability of the director of the division to adjudicate claims for nonpayment of wages or compensation to $7,500 or less. Section 5 increases this threshold over the years by increasing the amount to $13,000 for claims filed from July 1, 2026, through December 31, 2027, and in an amount specified by the director of the division to adjust for inflation beginning January 1, 2028. Section 5 also requires the division, in adjudicating wage claims, to determine whether a violation is willful. For each violation:

• The director shall publish on the division's website the names of all employers found to be in violation and whether the violation was willful; and
• If the violation is not remedied within 60 days after the division's finding that there was a violation, the division must notify all government bodies with the authority to deny, withdraw, or otherwise limit or impose remedial conditions on the employer's license, permit, registration, or other credential.
• For a willful violation, $5,000;
• For a violation not remedied within 60 days after the division's finding, $10,000;
• For a second or subsequent willful violation within 5 years, $25,000; or
• For a second or subsequent willful violation not remedied within 60 days after the division's finding, $50,000.
• Requires a fact finder to consider the time between an individual's exercise of a protected activity and an employer's adverse action when determining whether an employer has retaliated against the employee or worker;
• Specifies that any effort to use an individual's immigration status to negatively impact the wage and hour law rights, responsibilities, or proceedings of any employee or worker is an unlawful act of intimidation, threatening, coercion, discrimination, and retaliation; and
• Allows the division to order reasonable attorney fees and costs after investigating a discrimination or retaliation claim.

Additionally, the division may report an employer found to have violated a law related to wages and hours to any government body with authority to deny, withdraw, or otherwise limit or impose remedial conditions on a license, permit, registration, or other credential that the violating employer has or may seek. Section 5 also repeals language requiring the division to issue a determination on a wage complaint within 90 days.

Section 6 requires an employer found to have misclassified an employee as a nonemployee to pay a fine in the following amounts, in addition to any other relief ordered:

The director of the division must adjust these fine amounts for inflation by January 1, 2028, and every other year thereafter.

Section 6 also decreases the amount of time the division must wait before paying an employee out of the wage theft enforcement fund from 6 months to 120 days.

Current law prohibits an employer from discriminating or retaliating against an employee for taking protection under wage and hour laws or the law related to the employment of minors. Section 7 expands this provision to specify additional protected behavior and expands the prohibition to include other persons in addition to employers.

Section 7 also:

• Page 3, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 3, Line 2SECTION 1.  In Colorado Revised Statutes, 8-4-101, amend (6)

• Page 3, Line 3as follows:

• Page 3, Line 48-4-101.  Definitions. As used in this article 4, unless the context

• Page 3, Line 5otherwise requires:

• Page 3, Line 6(6)  "Employer" has the same meaning as set forth in the federal

• Page 3, Line 7"Fair Labor Standards Act of 1938", 29 U.S.C. sec. 203 (d), and includes

• Page 3, Line 8a foreign labor contractor, and a migratory field labor contractor or crew

• Page 3, Line 9leader, and each individual who owns or controls at least

• Page 3, Line 10twenty-five percent of the ownership interests in an employer;

• Page 3, Line 11except that the provisions of this article 4 do does not apply to a

• Page 3, Line 12minority owner of an employer that demonstrates full

• Page 3, Line 13delegation of its authority to control day-to-day operations of

• Page 3, Line 14the employer; the state or its agencies or entities; counties; cities and

• Page 4, Line 1counties; municipal corporations; quasi-municipal corporations; school

• Page 4, Line 2districts; and irrigation, reservoir, or drainage conservation companies or

• Page 4, Line 3districts organized and existing under the laws of Colorado.

• Page 4, Line 4SECTION 2.  In Colorado Revised Statutes, 8-4-105, amend (2)

• Page 4, Line 5as follows:

• Page 4, Line 68-4-105.  Payroll deductions permitted - notice required.

• Page 4, Line 7(2)  Nothing in this section authorizes a deduction below the applicable

• Page 4, Line 8minimum wage. applicable under the "Fair Labor Standards Act of 1938",

• Page 4, Line 929 U.S.C. sec. 201 et seq.

• Page 4, Line 10SECTION 3.  In Colorado Revised Statutes, 8-4-109, amend

• Page 4, Line 11(3)(b) introductory portion; and add (3.5) as follows:

• Page 4, Line 128-4-109.  Termination of employment - payments required -

• Page 4, Line 13civil penalties - payments to surviving spouse or heir. (3) (b)  On or

• Page 4, Line 14after January 1, 2023 Except as provided in subsection (3.5) of this

• Page 4, Line 15section, if an employer fails or refuses to pay, in the manner specified

• Page 4, Line 16in subsection (3)(d) of this section, all earned, vested, and determinable

• Page 4, Line 17wages or compensation within fourteen days after the a written demand

• Page 4, Line 18is sent or within fourteen days after a civil action or administrative claim

• Page 4, Line 19for the wages or compensation is sent to or served on the employer, the

• Page 4, Line 20employer is liable to the employee or group of similarly situated

• Page 4, Line 21employees for the amount of the earned, vested, determinable, and unpaid

• Page 4, Line 22wages or compensation plus an automatic penalty of:

• Page 4, Line 23(3.5)  The director may waive the penalty specified in

• Page 4, Line 24subsection (3)(b) of this section for an employer's failure to pay

• Page 4, Line 25claimed wages or compensation within fourteen days after a

• Page 4, Line 26written demand if the employer pays all claimed wages or

• Page 4, Line 27compensation within fourteen days after an administrative

• Page 5, Line 1claim for the same wages or compensation is sent to or served on

• Page 5, Line 2the employer. The director shall not waive the penalty if the

• Page 5, Line 3alleged violation is a second or subsequent failure or refusal

• Page 5, Line 4to pay an employee's wages or compensation within five years.

• Page 5, Line 5SECTION 4.  In Colorado Revised Statutes, 8-4-110, amend

• Page 5, Line 6(1)(a) introductory portion, (1)(a)(II), and (2) as follows:

• Page 5, Line 78-4-110.  Disputes - fees. (1) (a)  The court may award the

• Page 5, Line 8employer reasonable costs and attorney fees incurred in a civil action

• Page 5, Line 9brought under this article 4 if, within fourteen days after a written

• Page 5, Line 10demand letter is sent to or a civil action is served on the employer for

• Page 5, Line 11unpaid wages or compensation:

• Page 5, Line 12(II)  The employees receiving such tender ultimately fail to recover

• Page 5, Line 13a total sum that is greater than the amount the employer tendered The

• Page 5, Line 14court ultimately finds that the employees receiving such tender

• Page 5, Line 15pursued an action lacking substantial justification.

• Page 5, Line 16(2)  Any In addition to other relief available to employees

• Page 5, Line 17under this title 8, a person claiming to be aggrieved by a violation of

• Page 5, Line 18any provisions of this article or regulations prescribed pursuant to this

• Page 5, Line 19article this article 4 or any other law or rule related to wages

• Page 5, Line 20or hours may file suit in any court having jurisdiction over the parties

• Page 5, Line 21to pursue all available equitable relief, including equitable

• Page 5, Line 22relief to deter future violations and prevent unjust enrichment,

• Page 5, Line 23without regard to exhaustion of any administrative remedies.

• Page 5, Line 24SECTION 5.  In Colorado Revised Statutes, 8-4-111, amend

• Page 5, Line 25(1)(a)(II), (2)(a)(I) introductory portion, and (8); repeal (2)(a)(III); and

• Page 5, Line 26add (1)(a.5) and (9) as follows:

• Page 5, Line 278-4-111.  Enforcement - duty of director - duties of district or

• Page 6, Line 1city attorneys - local government authority to enact and enforce laws

• Page 6, Line 2- rules. (1) (a) (II)  The director may establish an administrative

• Page 6, Line 3procedure to receive complaints and adjudicate claims for nonpayment of

• Page 6, Line 4wages or compensation of:

• Page 6, Line 5(A)  Seven thousand five hundred dollars or less for claims filed

• Page 6, Line 6through June 30, 2026;

• Page 6, Line 7(B)  Thirteen thousand dollars or less for claims filed

• Page 6, Line 8from July 1, 2026, through December 31, 2027; and

• Page 6, Line 9(C)  An amount that the director specifies in rule by

• Page 6, Line 10January 1, 2028, and by rule for every other year thereafter.

• Page 6, Line 11Such amount must be equal to the amount in the previous

• Page 6, Line 12calendar year increased by one thousand dollars or a higher

• Page 6, Line 13amount if such higher amount is necessary to adjust for

• Page 6, Line 14inflation. Inflation is measured by the annual percentage

• Page 6, Line 15change in the United States department of labor's bureau of

• Page 6, Line 16labor statistics consumer price index, or a successor index, for

• Page 6, Line 17Denver-Aurora-Lakewood for all items paid for by urban

• Page 6, Line 18consumers.

• Page 6, Line 19(a.5)  In carrying out the duties specified in subsection

• Page 6, Line 20(1)(a)(I) of this section, the director:

• Page 6, Line 21(I)  Shall publish on the division's website, for any

• Page 6, Line 22violation that is a matter of public record pursuant to section

• Page 6, Line 238-1-115 (1)(b), the citation, determination, or written opinion;

• Page 6, Line 24whether the violation was willful; and the names of all

• Page 6, Line 25employers in violation;

• Page 6, Line 26(II)  Shall report an employer with a willful violation

• Page 6, Line 27unremedied within sixty days after the division's finding to any

• Page 7, Line 1government body with authority to deny, withdraw, or

• Page 7, Line 2otherwise limit or impose remedial conditions on the employer's

• Page 7, Line 3license, permit, registration, or other credential. The division

• Page 7, Line 4may post a decision against an employer by a government body

• Page 7, Line 5on the division's website.

• Page 7, Line 6(III)  May report an employer found to have violated a law

• Page 7, Line 7related to wages and hours to a government body with

• Page 7, Line 8authority to deny, withdraw, or otherwise limit or impose

• Page 7, Line 9remedial conditions on the employer's license, permit,

• Page 7, Line 10registration, or other credential. The division may post a

• Page 7, Line 11decision against an employer by a government body on the

• Page 7, Line 12division's website.

• Page 7, Line 13(2) (a) (I)  The division shall investigate a wage complaint

• Page 7, Line 14if one or more employees file a the wage complaint with the division

• Page 7, Line 15claiming unpaid wages or compensation, exclusive of penalties and

• Page 7, Line 16fines, of seven thousand five hundred dollars or less per employee

• Page 7, Line 17exclusive of penalties and fines, the division shall investigate the wage

• Page 7, Line 18complaint for claims filed through June 30, 2026; thirteen

• Page 7, Line 19thousand dollars or less for claims filed from July 1, 2026,

• Page 7, Line 20through December 31, 2027; and an amount that the director

• Page 7, Line 21specifies in rule by January 1, 2028, and by rule for every other

• Page 7, Line 22year thereafter. Such amount must be equal to the amount in

• Page 7, Line 23the previous calendar year increased by one thousand dollars

• Page 7, Line 24or a higher amount if such higher amount is necessary to adjust

• Page 7, Line 25for inflation. Inflation is measured by the annual percentage

• Page 7, Line 26change in the United States department of labor's bureau of

• Page 7, Line 27labor statistics consumer price index, or a successor index, for

• Page 8, Line 1Denver-Aurora-Lakewood for all items paid for by urban

• Page 8, Line 2consumers. The division may investigate any a wage complaint made

• Page 8, Line 3on behalf of a group of similarly situated employees. If the division

• Page 8, Line 4declines to investigate a group complaint, similarly situated employees

• Page 8, Line 5may consent in writing to participate as parties to that complaint, and the

• Page 8, Line 6division may pursue a direct investigation informed by and concurrent

• Page 8, Line 7with that complaint. The division shall initiate the administrative

• Page 8, Line 8procedure by sending a notice of complaint to the employer by mail or

• Page 8, Line 9electronic means in accordance with rules as the director may promulgate

• Page 8, Line 10when the complaint states a claim for relief. The notice of the complaint

• Page 8, Line 11must include:

• Page 8, Line 12(III)  The division shall issue a determination within ninety days

• Page 8, Line 13after the notice of complaint is sent unless the division extends the time

• Page 8, Line 14period by providing advance written notice to the employee and employer

• Page 8, Line 15stating good cause for the extension of time.

• Page 8, Line 16(8)  Nothing in this article shall be construed to limit article 4

• Page 8, Line 17limits:

• Page 8, Line 18(a)  The authority of the district attorney of any county or city and

• Page 8, Line 19county, or the city attorney of any city a person delegated authority

• Page 8, Line 20by a county or city and county to prosecute criminal offenses

• Page 8, Line 21or enforce laws or ordinances related to the payments of

• Page 8, Line 22wages, to:

• Page 8, Line 23(I)  Prosecute actions for such violations of this article as article

• Page 8, Line 244 that may come to his or her the district attorney's or the

• Page 8, Line 25delegated person's knowledge; or to

• Page 8, Line 26(II)  Enforce the provisions of this article this article 4

• Page 8, Line 27independently and without specific direction of the director; or to limit

• Page 9, Line 1(b)  The right of any wage claimant to sue directly or through an

• Page 9, Line 2assignee for any wages or penalty due him or her under the provisions of

• Page 9, Line 3this article or other relief available pursuant to this article 4.

• Page 9, Line 4(9)  A city, county, or city and county may enact and

• Page 9, Line 5enforce laws related to the payment of wages for work

• Page 9, Line 6performed within its jurisdiction if the laws do not diminish the

• Page 9, Line 7protections or benefits to employees provided in this article 4.

• Page 9, Line 8SECTION 6.  In Colorado Revised Statutes, 8-4-113, amend

• Page 9, Line 9(5)(a); and add (1)(a)(I.5) as follows:

• Page 9, Line 108-4-113.  Fines pursuant to enforcement - wage theft

• Page 9, Line 11enforcement fund - created - administrative lien and levy of employer

• Page 9, Line 12assets - wage claim payments from the fund - definition - rules.

• Page 9, Line 13(1) (a) (I.5)  An employer found to have misclassified an employee

• Page 9, Line 14as a nonemployee in a way that may affect a wage and hour

• Page 9, Line 15payment or reporting obligation under a state, federal, or local

• Page 9, Line 16law, rule, or regulation shall pay a fine in the following

• Page 9, Line 17amounts, increased by the director by rule by January 1, 2028,

• Page 9, Line 18and by rule by January 1 every other year based on the prior

• Page 9, Line 19two years' increase, if any, in the United States department of

• Page 9, Line 20labor's bureau of labor statistics consumer price index, or a

• Page 9, Line 21successor index, for Denver-Aurora-Lakewood for urban wage

• Page 9, Line 22earners and clerical workers, per employee, in addition to any

• Page 9, Line 23other relief ordered:

• Page 9, Line 24(A)  For a willful violation, five thousand dollars;

• Page 9, Line 25(B)  For a violation not remedied within sixty days after

• Page 9, Line 26the division's finding, ten thousand dollars;

• Page 9, Line 27(C)  For a second or subsequent willful violation within

• Page 10, Line 1five years, twenty-five thousand dollars; or

• Page 10, Line 2(D)  For a second or subsequent willful violation not

• Page 10, Line 3remedied within sixty days after the division's finding, fifty

• Page 10, Line 4thousand dollars.

• Page 10, Line 5(5) (a)  On and after April 1, 2024, if an employer fails to pay an

• Page 10, Line 6employee an amount of wages, compensation, or other monetary relief

• Page 10, Line 7owed the employee, as determined by the division pursuant to this article

• Page 10, Line 84 or article 6 or 12 of this title 8 or as decided by a hearing officer

• Page 10, Line 9pursuant to section 8-4-111.5, within six months one hundred twenty

• Page 10, Line 10days after the division's determination, the hearing officer's decision, or

• Page 10, Line 11the expiration of any an order from the division, the hearing officer, or

• Page 10, Line 12a court staying or postponing the employer's payment obligation,

• Page 10, Line 13whichever is later, the division may disburse the amount of wages,

• Page 10, Line 14compensation, or other monetary relief determined to be owed the

• Page 10, Line 15employee, subject to available resources in the fund and the division's

• Page 10, Line 16prioritization, from the fund to the employee.

• Page 10, Line 17SECTION 7.  In Colorado Revised Statutes, amend 8-4-120 as

• Page 10, Line 18follows:

• Page 10, Line 198-4-120.  Discrimination and retaliation prohibited - employee

• Page 10, Line 20protections - criminal penalties - civil remedies. (1)  An employer, or

• Page 10, Line 21any other person that is regularly engaged in business or

• Page 10, Line 22commercial activity that has contracted with an employer or

• Page 10, Line 23worker, directly or indirectly, for labor from which such

• Page 10, Line 24person is the beneficiary, shall not intimidate, threaten, restrain,

• Page 10, Line 25coerce, blacklist, discharge, or in any manner discriminate or retaliate

• Page 10, Line 26against any an employee or worker who has:

• Page 10, Line 27(a)   Filed any a complaint or instituted or caused to be instituted

• Page 11, Line 1any a proceeding under this article 4 or any other law or rule related to

• Page 11, Line 2wages, hours, or employment of minors; or

• Page 11, Line 3(b)  Testified or provided other evidence, or may testify or provide

• Page 11, Line 4other evidence, in any a proceeding on behalf of the employee or another

• Page 11, Line 5person regarding afforded protections under this article 4 or under any

• Page 11, Line 6other law or rule related to wages, or hours, or the employment of

• Page 11, Line 7minors; or

• Page 11, Line 8(c)  Raised concerns in good faith about compliance with

• Page 11, Line 9or otherwise provided information as to legal rights and

• Page 11, Line 10remedies available under this article 4 or any other law or rule

• Page 11, Line 11related to wages or hours to any person.

• Page 11, Line 12(2)  An employer who A person that violates this section

• Page 11, Line 13commits a class 2 misdemeanor.

• Page 11, Line 14(3) (a)  An employee or worker who alleges a violation of

• Page 11, Line 15subsection (1) of this section may file a civil action in a court of

• Page 11, Line 16competent jurisdiction against the employer alleged to have violated this

• Page 11, Line 17section to seek legal and equitable relief as appropriate to remedy the

• Page 11, Line 18violation, including:

• Page 11, Line 19(I)  Back pay;

• Page 11, Line 20(II)  Reinstatement of employment or, if reinstatement is not

• Page 11, Line 21feasible, front pay;

• Page 11, Line 22(III)  The payment of wages unlawfully withheld;

• Page 11, Line 23(IV)  Interest on unpaid wages at a rate of twelve percent per

• Page 11, Line 24annum from the date the wages were first due;

• Page 11, Line 25(V)  The payment of a penalty of fifty dollars per day for each

• Page 11, Line 26employee whose rights under this section were violated and for each day

• Page 11, Line 27that the violation occurred or continued;

• Page 12, Line 1(VI)  Liquidated damages in an amount equal to the greater of two

• Page 12, Line 2times the amount of the unpaid wages or other lost pay or

• Page 12, Line 3compensation or two thousand dollars; and

• Page 12, Line 4(VII)  Injunctive relief; and

• Page 12, Line 5(VIII)  Compensatory damages for other economic or

• Page 12, Line 6noneconomic loss or injury shown by competent evidence, which,

• Page 12, Line 7to the extent within the meaning of section 24-34-405 (3)(c) and

• Page 12, Line 8(3)(e), damages for emotional distress must not exceed the

• Page 12, Line 9amounts specified in section 24-34-405 (3)(d).

• Page 12, Line 10(b)  If the employee an aggrieved person prevails in a civil

• Page 12, Line 11action brought pursuant to this subsection (3), the court shall award the

• Page 12, Line 12employee person reasonable attorney fees and costs.

• Page 12, Line 13(c) (I)  In determining whether there has been retaliation

• Page 12, Line 14as prohibited in subsection (1) of this section, a fact finder shall

• Page 12, Line 15consider the time between an individual's exercise of a protected

• Page 12, Line 16activity and an employer's adverse action. A period of ninety or

• Page 12, Line 17fewer days between the exercise of a protected activity and the

• Page 12, Line 18adverse action may, without more, be sufficient to find

• Page 12, Line 19retaliatory intent.Adverse action occurring more than ninety

• Page 12, Line 20days after the exercise of a protected activity may also

• Page 12, Line 21constitute retaliation.

• Page 12, Line 22(II)  Any effort to use an individual's immigration status

• Page 12, Line 23to in any manner discriminate or retaliate against an employee

• Page 12, Line 24or worker who has engaged in activity described in subsection

• Page 12, Line 25(1) of this section is a violation of this section.

• Page 12, Line 26(4)  The division may investigate and enforce discrimination or

• Page 12, Line 27retaliation prohibited by this article 4 or article 6 of this title 8 and, after

• Page 13, Line 1investigation, may order the relief specified in subsection (3)(a) of this

• Page 13, Line 2section and reasonable attorney fees and costs.

• Page 13, Line 3 SECTION 8.  Appropriation. For the 2025-26 state fiscal

• Page 13, Line 4year, $328,210 is appropriated to the department of labor and employment

• Page 13, Line 5for use by the division of labor standards and statistics. This appropriation

• Page 13, Line 6is from the general fund and is based on an assumption that the division

• Page 13, Line 7will require an additional 2.8 FTE. To implement this act, the division

• Page 13, Line 8may use this appropriation for program costs related to labor standards.

• Page 13, Line 9SECTION 9.  Act subject to petition - effective date -

• Page 13, Line 10applicability. (1)  This act takes effect at 12:01 a.m. on the day following

• Page 13, Line 11the expiration of the ninety-day period after final adjournment of the

• Page 13, Line 12general assembly; except that, if a referendum petition is filed pursuant

• Page 13, Line 13to section 1 (3) of article V of the state constitution against this act or an

• Page 13, Line 14item, section, or part of this act within such period, then the act, item,

• Page 13, Line 15section, or part will not take effect unless approved by the people at the

• Page 13, Line 16general election to be held in November 2026 and, in such case, will take

• Page 13, Line 17effect on the date of the official declaration of the vote thereon by the

• Page 13, Line 18governor.

• Page 13, Line 19(2)  This act applies to conduct occurring on or after the applicable

• Page 13, Line 20effective date of this act.