A Bill for an Act
Page 1, Line 101Concerning the enforcement of wage and hour laws.
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,
andPage 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 ofdoPage 3, Line 12or its agencies or entities; counties; cities and counties; municipal
Page 3, Line 13corporations; quasi-municipal corporations; school districts; and
Page 3, Line 14irrigation, reservoir, or drainage conservation companies or districts
Page 3, Line 15organized and existing under the laws of Colorado.
Page 4, Line 1SECTION 2. In Colorado Revised Statutes, 8-4-105, amend (2)
Page 4, Line 2as follows:
Page 4, Line 38-4-105. Payroll deductions permitted - notice required.
Page 4, Line 4(2) Nothing in this section authorizes a deduction below the applicable
Page 4, Line 5minimum wage.
applicable under the "Fair Labor Standards Act of 1938",Page 4, Line 6
29 U.S.C. sec. 201 et seq.Page 4, Line 7SECTION 3. In Colorado Revised Statutes, 8-4-109, amend
Page 4, Line 8(3)(b) introductory portion; and add (3.5) as follows:
Page 4, Line 98-4-109. Termination of employment - payments required -
Page 4, Line 10civil penalties - payments to surviving spouse or heir. (3) (b)
On orPage 4, Line 11
after January 1, 2023Page 4, Line 12section, if an employer fails or refuses to pay, in the manner specified
Page 4, Line 13in subsection (3)(d) of this section, all earned, vested, and determinable
Page 4, Line 14wages or compensation within fourteen days after
thePage 4, Line 15is sent or within fourteen days after a civil action or administrative claim
Page 4, Line 16for the wages or compensation is sent to or served on the employer, the
Page 4, Line 17employer is liable to the employee or group of similarly situated
Page 4, Line 18employees for the amount of the earned, vested, determinable, and unpaid
Page 4, Line 19wages or compensation plus an automatic penalty of:
Page 4, Line 20(3.5) The director may waive the penalty specified in
Page 4, Line 21subsection (3)(b) of this section for an employer's failure to pay
Page 4, Line 22claimed wages or compensation within fourteen days after a
Page 4, Line 23written demand if the employer pays all claimed wages or
Page 4, Line 24compensation within fourteen days after an administrative
Page 4, Line 25claim for the same wages or compensation is sent to or served on
Page 4, Line 26the employer. The director shall not waive the penalty if the
Page 4, Line 27alleged violation is a second or subsequent failure or refusal
Page 5, Line 1to pay an employee's wages or compensation within five years.
Page 5, Line 2SECTION 4. In Colorado Revised Statutes, 8-4-110, amend (2);
Page 5, Line 3and repeal (1)(a) as follows:
Page 5, Line 48-4-110. Disputes - fees. (1) (a)
The court may award thePage 5, Line 5
employer reasonable costs and attorney fees incurred in a civil action if,Page 5, Line 6
within fourteen days after a written demand letter is sent to or a civilPage 5, Line 7
action is served on the employer for unpaid wages or compensation:Page 5, Line 8
(I) The employer makes full legal tender of all amounts demandedPage 5, Line 9
in good faith for all employees; andPage 5, Line 10
(II) The employees receiving such tender ultimately fail to recoverPage 5, Line 11
a total sum that is greater than the amount the employer tendered.Page 5, Line 12(2)
AnyPage 5, Line 13under this title 8, a person claiming to be aggrieved by a violation of
Page 5, Line 14
any provisions of this article or regulations prescribedpursuant to thisPage 5, Line 15
articlePage 5, Line 16or hours may file suit in any court having jurisdiction over the parties
Page 5, Line 17to pursue all available equitable relief, including equitable
Page 5, Line 18relief to deter future violations and prevent unjust enrichment,
Page 5, Line 19without regard to exhaustion of any administrative remedies.
Page 5, Line 20SECTION 5. In Colorado Revised Statutes, 8-4-111, amend
Page 5, Line 21(1)(a)(II), (2)(a)(I) introductory portion, and (8); repeal (2)(a)(III); and
Page 5, Line 22add (1)(a.5) as follows:
Page 5, Line 238-4-111. Enforcement - duty of director - duties of district or
Page 5, Line 24city attorneys - rules. (1) (a) (II) The director may establish an
Page 5, Line 25administrative procedure to receive complaints and adjudicate claims for
Page 5, Line 26nonpayment of wages or compensation of:
Page 5, Line 27(A) Seven thousand five hundred dollars or less for claims filed
Page 6, Line 1through June 30, 2026;
Page 6, Line 2(B) Thirteen thousand dollars or less for claims filed
Page 6, Line 3from July 1, 2026, through December 31, 2027; and
Page 6, Line 4(C) An amount that the director specifies in rule by
Page 6, Line 5January 1, 2028, and by rule for every other year thereafter.
Page 6, Line 6Such amount must be equal to the amount in the previous
Page 6, Line 7calendar year increased by one thousand dollars or a higher
Page 6, Line 8amount if such higher amount is necessary to adjust for
Page 6, Line 9inflation. Inflation is measured by the annual percentage
Page 6, Line 10change in the United States department of labor's bureau of
Page 6, Line 11labor statistics consumer price index, or a successor index, for
Page 6, Line 12Denver-Aurora-Lakewood for all items paid for by urban
Page 6, Line 13consumers.
Page 6, Line 14(a.5) In carrying out the duties specified in subsection
Page 6, Line 15(1)(a)(I) of this section, the director:
Page 6, Line 16(I) Shall publish on the division's website, for any
Page 6, Line 17violation that is a matter of public record pursuant to section
Page 6, Line 188-1-115 (1)(b), the citation, determination, or written opinion;
Page 6, Line 19whether the violation was willful; and the names of all
Page 6, Line 20employers in violation;
Page 6, Line 21(II) Shall report an employer with a willful violation
Page 6, Line 22unremedied within sixty days after the division's finding to any
Page 6, Line 23government body with authority to deny, withdraw, or
Page 6, Line 24otherwise limit or impose remedial conditions on the employer's
Page 6, Line 25license, permit, registration, or other credential. The division
Page 6, Line 26may post a decision against an employer by a government body
Page 6, Line 27on the division's website.
Page 7, Line 1(III) May report an employer found to have violated a law
Page 7, Line 2related to wages and hours to a government body with
Page 7, Line 3authority to deny, withdraw, or otherwise limit or impose
Page 7, Line 4remedial conditions on the employer's license, permit,
Page 7, Line 5registration, or other credential. The division may post a
Page 7, Line 6decision against an employer by a government body on the
Page 7, Line 7division's website.
Page 7, Line 8(2) (a) (I) The division shall investigate a wage complaint
Page 7, Line 9if one or more employees file
aPage 7, Line 10claiming unpaid wages or compensation, exclusive of penalties and
Page 7, Line 11fines, of seven thousand five hundred dollars or less per employee
Page 7, Line 12
exclusive of penalties and fines, the division shall investigate the wagePage 7, Line 13
complaintPage 7, Line 14thousand dollars or less for claims filed from July 1, 2026,
Page 7, Line 15through December 31, 2027; and an amount that the director
Page 7, Line 16specifies in rule by January 1, 2028, and by rule for every other
Page 7, Line 17year thereafter. Such amount must be equal to the amount in
Page 7, Line 18the previous calendar year increased by one thousand dollars
Page 7, Line 19or a higher amount if such higher amount is necessary to adjust
Page 7, Line 20for inflation. Inflation is measured by the annual percentage
Page 7, Line 21change in the United States department of labor's bureau of
Page 7, Line 22labor statistics consumer price index, or a successor index, for
Page 7, Line 23Denver-Aurora-Lakewood for all items paid for by urban
Page 7, Line 24consumers. The division may investigate
anyPage 7, Line 25on behalf of a group of similarly situated employees. If the division
Page 7, Line 26declines to investigate a group complaint, similarly situated employees
Page 7, Line 27may consent in writing to participate as parties to that complaint, and the
Page 8, Line 1division may pursue a direct investigation informed by and concurrent
Page 8, Line 2with that complaint. The division shall initiate the administrative
Page 8, Line 3procedure by sending a notice of complaint to the employer by mail or
Page 8, Line 4electronic means in accordance with rules as the director may promulgate
Page 8, Line 5when the complaint states a claim for relief. The notice of the complaint
Page 8, Line 6must include:
Page 8, Line 7(III)
The division shall issue a determination within ninety daysPage 8, Line 8
after the notice of complaint is sent unless the division extends the timePage 8, Line 9
period by providing advance written notice to the employee and employerPage 8, Line 10
stating good cause for the extension of time.Page 8, Line 11(8) Nothing in this
article shall be construed to limitPage 8, Line 12limits the authority of the district attorney of any county or city and
Page 8, Line 13county or the city attorney of any city to prosecute actions for such
Page 8, Line 14violations of this
articlehis or herPage 8, Line 15attorney's or a city attorney's knowledge, or to enforce
thePage 8, Line 16
provisions of this articlePage 8, Line 17specific direction of the director, or to limit the right of any wage
Page 8, Line 18claimant to sue directly or through an assignee for any wages,
orPage 8, Line 19
due him or her under the provisions of this articlePage 8, Line 20available pursuant to this article 4. A local or state entity
Page 8, Line 21with authority to enforce this article 4, including the district
Page 8, Line 22attorney of a county or city and county, a city attorney of any
Page 8, Line 23city, and the attorney general, may pursue any relief
Page 8, Line 24authorized by this article 4.
Page 8, Line 25SECTION 6. In Colorado Revised Statutes, 8-4-113, amend
Page 8, Line 26(5)(a); and add (1)(a)(I.5) as follows:
Page 8, Line 278-4-113. Fines pursuant to enforcement - wage theft
Page 9, Line 1enforcement fund - created - administrative lien and levy of employer
Page 9, Line 2assets - wage claim payments from the fund - definition - rules.
Page 9, Line 3(1) (a) (I.5) An employer found to have misclassified an employee
Page 9, Line 4as a nonemployee in a way that may affect a wage and hour
Page 9, Line 5payment or reporting obligation under a state, federal, or local
Page 9, Line 6law, rule, or regulation shall pay a fine in the following
Page 9, Line 7amounts, increased by the director by rule by January 1, 2028,
Page 9, Line 8and by rule by January 1 every other year based on the prior
Page 9, Line 9two years' increase, if any, in the United States department of
Page 9, Line 10labor's bureau of labor statistics consumer price index, or a
Page 9, Line 11successor index, for Denver-Aurora-Lakewood for urban wage
Page 9, Line 12earners and clerical workers, per employee, in addition to any
Page 9, Line 13other relief ordered:
Page 9, Line 14(A) For a willful violation, five thousand dollars;
Page 9, Line 15(B) For a violation not remedied within sixty days after
Page 9, Line 16the division's finding, ten thousand dollars;
Page 9, Line 17(C) For a second or subsequent willful violation within
Page 9, Line 18five years, twenty-five thousand dollars; or
Page 9, Line 19(D) For a second or subsequent willful violation not
Page 9, Line 20remedied within sixty days after the division's finding, fifty
Page 9, Line 21thousand dollars.
Page 9, Line 22(5) (a) On and after April 1, 2024, if an employer fails to pay an
Page 9, Line 23employee an amount of wages, compensation, or other monetary relief
Page 9, Line 24owed the employee, as determined by the division pursuant to this article
Page 9, Line 254 or article 6 or 12 of this title 8 or as decided by a hearing officer
Page 9, Line 26pursuant to section 8-4-111.5, within
six monthsPage 9, Line 27days after the division's determination, the hearing officer's decision, or
Page 10, Line 1the expiration of
anyPage 10, Line 2a court staying or postponing the employer's payment obligation,
Page 10, Line 3whichever is later, the division may disburse the amount of wages,
Page 10, Line 4compensation, or other monetary relief determined to be owed the
Page 10, Line 5employee, subject to available resources in the fund and the division's
Page 10, Line 6prioritization, from the fund to the employee.
Page 10, Line 7SECTION 7. In Colorado Revised Statutes, amend 8-4-120 as
Page 10, Line 8follows:
Page 10, Line 98-4-120. Discrimination and retaliation prohibited - employee
Page 10, Line 10protections - criminal penalties - civil remedies. (1) An employer, or
Page 10, Line 11any other person that is regularly engaged in business or
Page 10, Line 12commercial activity that has contracted with an employer or
Page 10, Line 13worker, directly or indirectly, for labor from which such
Page 10, Line 14person is the beneficiary, shall not intimidate, threaten, restrain,
Page 10, Line 15coerce, blacklist, discharge, or in any manner discriminate or retaliate
Page 10, Line 16against
anyPage 10, Line 17(a) Filed
anyPage 10, Line 18
anyPage 10, Line 19wages, hours, or employment of minors;
orPage 10, Line 20(b) Testified or provided other evidence, or may testify or provide
Page 10, Line 21other evidence, in
anyPage 10, Line 22person regarding afforded protections under this article 4 or under any
Page 10, Line 23other law or rule related to wages,
orPage 10, Line 24minors; or
Page 10, Line 25(c) Raised concerns in good faith about compliance with
Page 10, Line 26or otherwise provided information as to legal rights and
Page 10, Line 27remedies available under this article 4 or any other law or rule
Page 11, Line 1related to wages or hours to any person.
Page 11, Line 2(2)
An employer whoPage 11, Line 3commits a class 2 misdemeanor.
Page 11, Line 4(3) (a) An employee or worker who alleges a violation of
Page 11, Line 5subsection (1) of this section may file a civil action in a court of
Page 11, Line 6competent jurisdiction against the employer alleged to have violated this
Page 11, Line 7section to seek legal and equitable relief as appropriate to remedy the
Page 11, Line 8violation, including:
Page 11, Line 9(I) Back pay;
Page 11, Line 10(II) Reinstatement of employment or, if reinstatement is not
Page 11, Line 11feasible, front pay;
Page 11, Line 12(III) The payment of wages unlawfully withheld;
Page 11, Line 13(IV) Interest on unpaid wages at a rate of twelve percent per
Page 11, Line 14annum from the date the wages were first due;
Page 11, Line 15(V) The payment of a penalty of fifty dollars per day for each
Page 11, Line 16employee whose rights under this section were violated and for each day
Page 11, Line 17that the violation occurred or continued;
Page 11, Line 18(VI) Liquidated damages in an amount equal to the greater of two
Page 11, Line 19times the amount of the unpaid wages or other lost pay or
Page 11, Line 20compensation or two thousand dollars;
andPage 11, Line 21(VII) Injunctive relief; and
Page 11, Line 22(VIII) Compensatory damages for other economic or
Page 11, Line 23noneconomic loss or injury shown by competent evidence.
Page 11, Line 24(b) If
the employeePage 11, Line 25action brought pursuant to this subsection (3), the court shall award the
Page 11, Line 26
employeePage 11, Line 27(c) (I) In determining whether there has been retaliation
Page 12, Line 1as prohibited in subsection (1) of this section, a fact finder shall
Page 12, Line 2consider the time between an individual's exercise of a protected
Page 12, Line 3activity and an employer's adverse action. A period of ninety or
Page 12, Line 4fewer days between the exercise of a protected activity and the
Page 12, Line 5adverse action may, without more, be sufficient to find
Page 12, Line 6retaliatory intent.
Page 12, Line 7(II) Any effort to use an individual's immigration status
Page 12, Line 8to negatively impact the wage and hour law rights,
Page 12, Line 9responsibilities, or proceedings of any employee or worker is an
Page 12, Line 10act of intimidation, threatening, coercion, discrimination, and
Page 12, Line 11retaliation in violation of subsection (1) of this section.
Page 12, Line 12(4) The division may investigate and enforce discrimination or
Page 12, Line 13retaliation prohibited by this article 4 or article 6 of this title 8 and, after
Page 12, Line 14investigation, may order the relief specified in subsection (3)(a) of this
Page 12, Line 15section and reasonable attorney fees and costs.
Page 12, Line 16SECTION 8. Act subject to petition - effective date -
Page 12, Line 17applicability. (1) This act takes effect at 12:01 a.m. on the day following
Page 12, Line 18the expiration of the ninety-day period after final adjournment of the
Page 12, Line 19general assembly; except that, if a referendum petition is filed pursuant
Page 12, Line 20to section 1 (3) of article V of the state constitution against this act or an
Page 12, Line 21item, section, or part of this act within such period, then the act, item,
Page 12, Line 22section, or part will not take effect unless approved by the people at the
Page 12, Line 23general election to be held in November 2026 and, in such case, will take
Page 12, Line 24effect on the date of the official declaration of the vote thereon by the
Page 12, Line 25governor.
Page 12, Line 26(2) This act applies to conduct occurring on or after the applicable
Page 12, Line 27effective date of this act.