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:
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
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 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 3, Line 15counties; municipal corporations; quasi-municipal corporations; school
Page 4, Line 1districts; and irrigation, reservoir, or drainage conservation companies or
Page 4, Line 2districts organized and existing under the laws of Colorado.
Page 4, Line 3SECTION 2. In Colorado Revised Statutes, 8-4-105, amend (2)
Page 4, Line 4as follows:
Page 4, Line 58-4-105. Payroll deductions permitted - notice required.
Page 4, Line 6(2) Nothing in this section authorizes a deduction below the applicable
Page 4, Line 7minimum wage.
applicable under the "Fair Labor Standards Act of 1938",Page 4, Line 8
29 U.S.C. sec. 201 et seq.Page 4, Line 9SECTION 3. In Colorado Revised Statutes, 8-4-109, amend
Page 4, Line 10(3)(b) introductory portion; and add (3.5) as follows:
Page 4, Line 118-4-109. Termination of employment - payments required -
Page 4, Line 12civil penalties - payments to surviving spouse or heir. (3) (b)
On orPage 4, Line 13
after January 1, 2023Page 4, Line 14section, if an employer fails or refuses to pay, in the manner specified
Page 4, Line 15in subsection (3)(d) of this section, all earned, vested, and determinable
Page 4, Line 16wages or compensation within fourteen days after
thePage 4, Line 17is sent or within fourteen days after a civil action or administrative claim
Page 4, Line 18for the wages or compensation is sent to or served on the employer, the
Page 4, Line 19employer is liable to the employee or group of similarly situated
Page 4, Line 20employees for the amount of the earned, vested, determinable, and unpaid
Page 4, Line 21wages or compensation plus an automatic penalty of:
Page 4, Line 22(3.5) The director may waive the penalty specified in
Page 4, Line 23subsection (3)(b) of this section for an employer's failure to pay
Page 4, Line 24claimed wages or compensation within fourteen days after a
Page 4, Line 25written demand if the employer pays all claimed wages or
Page 4, Line 26compensation within fourteen days after an administrative
Page 4, Line 27claim for the same wages or compensation is sent to or served on
Page 5, Line 1the employer. The director shall not waive the penalty if the
Page 5, Line 2alleged violation is a second or subsequent failure or refusal
Page 5, Line 3to pay an employee's wages or compensation within five years.
Page 5, Line 4SECTION 4. In Colorado Revised Statutes, 8-4-110, amend (2);
Page 5, Line 5and repeal (1)(a) as follows:
Page 5, Line 68-4-110. Disputes - fees. (1) (a)
The court may award thePage 5, Line 7
employer reasonable costs and attorney fees incurred in a civil action if,Page 5, Line 8
within fourteen days after a written demand letter is sent to or a civilPage 5, Line 9
action is served on the employer for unpaid wages or compensation:Page 5, Line 10
(I) The employer makes full legal tender of all amounts demandedPage 5, Line 11
in good faith for all employees; andPage 5, Line 12
(II) The employees receiving such tender ultimately fail to recoverPage 5, Line 13
a total sum that is greater than the amount the employer tendered.Page 5, Line 14(2)
AnyPage 5, Line 15under this title 8, a person claiming to be aggrieved by a violation of
Page 5, Line 16
any provisions of this article or regulations prescribedpursuant to thisPage 5, Line 17
articlePage 5, Line 18or hours may file suit in any court having jurisdiction over the parties
Page 5, Line 19to pursue all available equitable relief, including equitable
Page 5, Line 20relief to deter future violations and prevent unjust enrichment,
Page 5, Line 21without regard to exhaustion of any administrative remedies.
Page 5, Line 22SECTION 5. In Colorado Revised Statutes, 8-4-111, amend
Page 5, Line 23(1)(a)(II), (2)(a)(I) introductory portion, and (8); repeal (2)(a)(III); and
Page 5, Line 24add (1)(a.5) and (9) as follows:
Page 5, Line 258-4-111. Enforcement - duty of director - duties of district or
Page 5, Line 26city attorneys - local government authority to enact and enforce laws
Page 5, Line 27- rules. (1) (a) (II) The director may establish an administrative
Page 6, Line 1procedure to receive complaints and adjudicate claims for nonpayment of
Page 6, Line 2wages or compensation of:
Page 6, Line 3(A) Seven thousand five hundred dollars or less for claims filed
Page 6, Line 4through June 30, 2026;
Page 6, Line 5(B) Thirteen thousand dollars or less for claims filed
Page 6, Line 6from July 1, 2026, through December 31, 2027; and
Page 6, Line 7(C) An amount that the director specifies in rule by
Page 6, Line 8January 1, 2028, and by rule for every other year thereafter.
Page 6, Line 9Such amount must be equal to the amount in the previous
Page 6, Line 10calendar year increased by one thousand dollars or a higher
Page 6, Line 11amount if such higher amount is necessary to adjust for
Page 6, Line 12inflation. Inflation is measured by the annual percentage
Page 6, Line 13change in the United States department of labor's bureau of
Page 6, Line 14labor statistics consumer price index, or a successor index, for
Page 6, Line 15Denver-Aurora-Lakewood for all items paid for by urban
Page 6, Line 16consumers.
Page 6, Line 17(a.5) In carrying out the duties specified in subsection
Page 6, Line 18(1)(a)(I) of this section, the director:
Page 6, Line 19(I) Shall publish on the division's website, for any
Page 6, Line 20violation that is a matter of public record pursuant to section
Page 6, Line 218-1-115 (1)(b), the citation, determination, or written opinion;
Page 6, Line 22whether the violation was willful; and the names of all
Page 6, Line 23employers in violation;
Page 6, Line 24(II) Shall report an employer with a willful violation
Page 6, Line 25unremedied within sixty days after the division's finding to any
Page 6, Line 26government body with authority to deny, withdraw, or
Page 6, Line 27otherwise limit or impose remedial conditions on the employer's
Page 7, Line 1license, permit, registration, or other credential. The division
Page 7, Line 2may post a decision against an employer by a government body
Page 7, Line 3on the division's website.
Page 7, Line 4(III) May report an employer found to have violated a law
Page 7, Line 5related to wages and hours to a government body with
Page 7, Line 6authority to deny, withdraw, or otherwise limit or impose
Page 7, Line 7remedial conditions on the employer's license, permit,
Page 7, Line 8registration, or other credential. The division may post a
Page 7, Line 9decision against an employer by a government body on the
Page 7, Line 10division's website.
Page 7, Line 11(2) (a) (I) The division shall investigate a wage complaint
Page 7, Line 12if one or more employees file
aPage 7, Line 13claiming unpaid wages or compensation, exclusive of penalties and
Page 7, Line 14fines, of seven thousand five hundred dollars or less per employee
Page 7, Line 15
exclusive of penalties and fines, the division shall investigate the wagePage 7, Line 16
complaintPage 7, Line 17thousand dollars or less for claims filed from July 1, 2026,
Page 7, Line 18through December 31, 2027; and an amount that the director
Page 7, Line 19specifies in rule by January 1, 2028, and by rule for every other
Page 7, Line 20year thereafter. Such amount must be equal to the amount in
Page 7, Line 21the previous calendar year increased by one thousand dollars
Page 7, Line 22or a higher amount if such higher amount is necessary to adjust
Page 7, Line 23for inflation. Inflation is measured by the annual percentage
Page 7, Line 24change in the United States department of labor's bureau of
Page 7, Line 25labor statistics consumer price index, or a successor index, for
Page 7, Line 26Denver-Aurora-Lakewood for all items paid for by urban
Page 7, Line 27consumers. The division may investigate
anyPage 8, Line 1on behalf of a group of similarly situated employees. If the division
Page 8, Line 2declines to investigate a group complaint, similarly situated employees
Page 8, Line 3may consent in writing to participate as parties to that complaint, and the
Page 8, Line 4division may pursue a direct investigation informed by and concurrent
Page 8, Line 5with that complaint. The division shall initiate the administrative
Page 8, Line 6procedure by sending a notice of complaint to the employer by mail or
Page 8, Line 7electronic means in accordance with rules as the director may promulgate
Page 8, Line 8when the complaint states a claim for relief. The notice of the complaint
Page 8, Line 9must include:
Page 8, Line 10(III)
The division shall issue a determination within ninety daysPage 8, Line 11
after the notice of complaint is sent unless the division extends the timePage 8, Line 12
period by providing advance written notice to the employee and employerPage 8, Line 13
stating good cause for the extension of time.Page 8, Line 14(8) Nothing in this
article shall be construed to limitPage 8, Line 15limits:
Page 8, Line 16(a) The authority of the district attorney of any county or city and
Page 8, Line 17county, or
the city attorney of any cityPage 8, Line 18by a county or city and county to prosecute criminal offenses
Page 8, Line 19or enforce laws or ordinances related to the payments of
Page 8, Line 20wages, to:
Page 8, Line 21(I) Prosecute actions for
sucharticle asPage 8, Line 224 that may come to
his or herPage 8, Line 23delegated person's knowledge; or
toPage 8, Line 24(II) Enforce
the provisions of this articlePage 8, Line 25independently and without specific direction of the director; or
to limitPage 8, Line 26(b) The right of any wage claimant to sue directly or through an
Page 8, Line 27assignee for any wages or penalty
due him or her under the provisions ofPage 9, Line 1
this articlePage 9, Line 2(9) A city, county, or city and county may enact and
Page 9, Line 3enforce laws related to the payment of wages for work
Page 9, Line 4performed within its jurisdiction if the laws do not diminish the
Page 9, Line 5protections or benefits to employees provided in this article 4.
Page 9, Line 6SECTION 6. In Colorado Revised Statutes, 8-4-113, amend
Page 9, Line 7(5)(a); and add (1)(a)(I.5) as follows:
Page 9, Line 88-4-113. Fines pursuant to enforcement - wage theft
Page 9, Line 9enforcement fund - created - administrative lien and levy of employer
Page 9, Line 10assets - wage claim payments from the fund - definition - rules.
Page 9, Line 11(1) (a) (I.5) An employer found to have misclassified an employee
Page 9, Line 12as a nonemployee in a way that may affect a wage and hour
Page 9, Line 13payment or reporting obligation under a state, federal, or local
Page 9, Line 14law, rule, or regulation shall pay a fine in the following
Page 9, Line 15amounts, increased by the director by rule by January 1, 2028,
Page 9, Line 16and by rule by January 1 every other year based on the prior
Page 9, Line 17two years' increase, if any, in the United States department of
Page 9, Line 18labor's bureau of labor statistics consumer price index, or a
Page 9, Line 19successor index, for Denver-Aurora-Lakewood for urban wage
Page 9, Line 20earners and clerical workers, per employee, in addition to any
Page 9, Line 21other relief ordered:
Page 9, Line 22(A) For a willful violation, five thousand dollars;
Page 9, Line 23(B) For a violation not remedied within sixty days after
Page 9, Line 24the division's finding, ten thousand dollars;
Page 9, Line 25(C) For a second or subsequent willful violation within
Page 9, Line 26five years, twenty-five thousand dollars; or
Page 9, Line 27(D) For a second or subsequent willful violation not
Page 10, Line 1remedied within sixty days after the division's finding, fifty
Page 10, Line 2thousand dollars.
Page 10, Line 3(5) (a) On and after April 1, 2024, if an employer fails to pay an
Page 10, Line 4employee an amount of wages, compensation, or other monetary relief
Page 10, Line 5owed the employee, as determined by the division pursuant to this article
Page 10, Line 64 or article 6 or 12 of this title 8 or as decided by a hearing officer
Page 10, Line 7pursuant to section 8-4-111.5, within
six monthsPage 10, Line 8days after the division's determination, the hearing officer's decision, or
Page 10, Line 9the expiration of
anyPage 10, Line 10a court staying or postponing the employer's payment obligation,
Page 10, Line 11whichever is later, the division may disburse the amount of wages,
Page 10, Line 12compensation, or other monetary relief determined to be owed the
Page 10, Line 13employee, subject to available resources in the fund and the division's
Page 10, Line 14prioritization, from the fund to the employee.
Page 10, Line 15SECTION 7. In Colorado Revised Statutes, amend 8-4-120 as
Page 10, Line 16follows:
Page 10, Line 178-4-120. Discrimination and retaliation prohibited - employee
Page 10, Line 18protections - criminal penalties - civil remedies. (1) An employer, or
Page 10, Line 19any other person that is regularly engaged in business or
Page 10, Line 20commercial activity that has contracted with an employer or
Page 10, Line 21worker, directly or indirectly, for labor from which such
Page 10, Line 22person is the beneficiary, shall not intimidate, threaten, restrain,
Page 10, Line 23coerce, blacklist, discharge, or in any manner discriminate or retaliate
Page 10, Line 24against
anyPage 10, Line 25(a) Filed
anyPage 10, Line 26
anyPage 10, Line 27wages, hours, or employment of minors;
orPage 11, Line 1(b) Testified or provided other evidence, or may testify or provide
Page 11, Line 2other evidence, in
anyPage 11, Line 3person regarding afforded protections under this article 4 or under any
Page 11, Line 4other law or rule related to wages,
orPage 11, Line 5minors; or
Page 11, Line 6(c) Raised concerns in good faith about compliance with
Page 11, Line 7or otherwise provided information as to legal rights and
Page 11, Line 8remedies available under this article 4 or any other law or rule
Page 11, Line 9related to wages or hours to any person.
Page 11, Line 10(2)
An employer whoPage 11, Line 11commits a class 2 misdemeanor.
Page 11, Line 12(3) (a) An employee or worker who alleges a violation of
Page 11, Line 13subsection (1) of this section may file a civil action in a court of
Page 11, Line 14competent jurisdiction against the employer alleged to have violated this
Page 11, Line 15section to seek legal and equitable relief as appropriate to remedy the
Page 11, Line 16violation, including:
Page 11, Line 17(I) Back pay;
Page 11, Line 18(II) Reinstatement of employment or, if reinstatement is not
Page 11, Line 19feasible, front pay;
Page 11, Line 20(III) The payment of wages unlawfully withheld;
Page 11, Line 21(IV) Interest on unpaid wages at a rate of twelve percent per
Page 11, Line 22annum from the date the wages were first due;
Page 11, Line 23(V) The payment of a penalty of fifty dollars per day for each
Page 11, Line 24employee whose rights under this section were violated and for each day
Page 11, Line 25that the violation occurred or continued;
Page 11, Line 26(VI) Liquidated damages in an amount equal to the greater of two
Page 11, Line 27times the amount of the unpaid wages or other lost pay or
Page 12, Line 1compensation or two thousand dollars;
andPage 12, Line 2(VII) Injunctive relief; and
Page 12, Line 3(VIII) Compensatory damages for other economic or
Page 12, Line 4noneconomic loss or injury shown by competent evidence.
Page 12, Line 5(b) If
the employeePage 12, Line 6action brought pursuant to this subsection (3), the court shall award the
Page 12, Line 7
employeePage 12, Line 8(c) (I) In determining whether there has been retaliation
Page 12, Line 9as prohibited in subsection (1) of this section, a fact finder shall
Page 12, Line 10consider the time between an individual's exercise of a protected
Page 12, Line 11activity and an employer's adverse action. A period of ninety or
Page 12, Line 12fewer days between the exercise of a protected activity and the
Page 12, Line 13adverse action may, without more, be sufficient to find
Page 12, Line 14retaliatory intent.
Page 12, Line 15(II) Any effort to use an individual's immigration status
Page 12, Line 16to in any manner discriminate or retaliate against an employee
Page 12, Line 17or worker who has engaged in activity described in subsection
Page 12, Line 18(1) of this section is a violation of this section.
Page 12, Line 19(4) The division may investigate and enforce discrimination or
Page 12, Line 20retaliation prohibited by this article 4 or article 6 of this title 8 and, after
Page 12, Line 21investigation, may order the relief specified in subsection (3)(a) of this
Page 12, Line 22section and reasonable attorney fees and costs.
Page 12, Line 23SECTION 8. Act subject to petition - effective date -
Page 12, Line 24applicability. (1) This act takes effect at 12:01 a.m. on the day following
Page 12, Line 25the expiration of the ninety-day period after final adjournment of the
Page 12, Line 26general assembly; except that, if a referendum petition is filed pursuant
Page 12, Line 27to section 1 (3) of article V of the state constitution against this act or an
Page 13, Line 1item, section, or part of this act within such period, then the act, item,
Page 13, Line 2section, or part will not take effect unless approved by the people at the
Page 13, Line 3general election to be held in November 2026 and, in such case, will take
Page 13, Line 4effect on the date of the official declaration of the vote thereon by the
Page 13, Line 5governor.
Page 13, Line 6(2) This act applies to conduct occurring on or after the applicable
Page 13, Line 7effective date of this act.