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:
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 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 9
29 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 orPage 4, Line 14
after January 1, 2023Page 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
thePage 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 (2);
Page 5, Line 6and repeal (1)(a) as follows:
Page 5, Line 78-4-110. Disputes - fees. (1) (a)
The court may award thePage 5, Line 8
employer reasonable costs and attorney fees incurred in a civil action if,Page 5, Line 9
within fourteen days after a written demand letter is sent to or a civilPage 5, Line 10
action is served on the employer for unpaid wages or compensation:Page 5, Line 11
(I) The employer makes full legal tender of all amounts demandedPage 5, Line 12
in good faith for all employees; andPage 5, Line 13
(II) The employees receiving such tender ultimately fail to recoverPage 5, Line 14
a total sum that is greater than the amount the employer tendered.Page 5, Line 15(2)
AnyPage 5, Line 16under this title 8, a person claiming to be aggrieved by a violation of
Page 5, Line 17
any provisions of this article or regulations prescribedpursuant to thisPage 5, Line 18
articlePage 5, Line 19or hours may file suit in any court having jurisdiction over the parties
Page 5, Line 20to pursue all available equitable relief, including equitable
Page 5, Line 21relief to deter future violations and prevent unjust enrichment,
Page 5, Line 22without regard to exhaustion of any administrative remedies.
Page 5, Line 23SECTION 5. In Colorado Revised Statutes, 8-4-111, amend
Page 5, Line 24(1)(a)(II), (2)(a)(I) introductory portion, and (8); repeal (2)(a)(III); and
Page 5, Line 25add (1)(a.5) and (9) as follows:
Page 5, Line 268-4-111. Enforcement - duty of director - duties of district or
Page 5, Line 27city attorneys - local government authority to enact and enforce laws
Page 6, Line 1- rules. (1) (a) (II) The director may establish an administrative
Page 6, Line 2procedure to receive complaints and adjudicate claims for nonpayment of
Page 6, Line 3wages or compensation of:
Page 6, Line 4(A) Seven thousand five hundred dollars or less for claims filed
Page 6, Line 5through June 30, 2026;
Page 6, Line 6(B) Thirteen thousand dollars or less for claims filed
Page 6, Line 7from July 1, 2026, through December 31, 2027; and
Page 6, Line 8(C) An amount that the director specifies in rule by
Page 6, Line 9January 1, 2028, and by rule for every other year thereafter.
Page 6, Line 10Such amount must be equal to the amount in the previous
Page 6, Line 11calendar year increased by one thousand dollars or a higher
Page 6, Line 12amount if such higher amount is necessary to adjust for
Page 6, Line 13inflation. Inflation is measured by the annual percentage
Page 6, Line 14change in the United States department of labor's bureau of
Page 6, Line 15labor statistics consumer price index, or a successor index, for
Page 6, Line 16Denver-Aurora-Lakewood for all items paid for by urban
Page 6, Line 17consumers.
Page 6, Line 18(a.5) In carrying out the duties specified in subsection
Page 6, Line 19(1)(a)(I) of this section, the director:
Page 6, Line 20(I) Shall publish on the division's website, for any
Page 6, Line 21violation that is a matter of public record pursuant to section
Page 6, Line 228-1-115 (1)(b), the citation, determination, or written opinion;
Page 6, Line 23whether the violation was willful; and the names of all
Page 6, Line 24employers in violation;
Page 6, Line 25(II) Shall report an employer with a willful violation
Page 6, Line 26unremedied within sixty days after the division's finding to any
Page 6, Line 27government body with authority to deny, withdraw, or
Page 7, Line 1otherwise limit or impose remedial conditions on the employer's
Page 7, Line 2license, permit, registration, or other credential. The division
Page 7, Line 3may post a decision against an employer by a government body
Page 7, Line 4on the division's website.
Page 7, Line 5(III) May report an employer found to have violated a law
Page 7, Line 6related to wages and hours to a government body with
Page 7, Line 7authority to deny, withdraw, or otherwise limit or impose
Page 7, Line 8remedial conditions on the employer's license, permit,
Page 7, Line 9registration, or other credential. The division may post a
Page 7, Line 10decision against an employer by a government body on the
Page 7, Line 11division's website.
Page 7, Line 12(2) (a) (I) The division shall investigate a wage complaint
Page 7, Line 13if one or more employees file
aPage 7, Line 14claiming unpaid wages or compensation, exclusive of penalties and
Page 7, Line 15fines, of seven thousand five hundred dollars or less per employee
Page 7, Line 16
exclusive of penalties and fines, the division shall investigate the wagePage 7, Line 17
complaintPage 7, Line 18thousand dollars or less for claims filed from July 1, 2026,
Page 7, Line 19through December 31, 2027; and an amount that the director
Page 7, Line 20specifies in rule by January 1, 2028, and by rule for every other
Page 7, Line 21year thereafter. Such amount must be equal to the amount in
Page 7, Line 22the previous calendar year increased by one thousand dollars
Page 7, Line 23or a higher amount if such higher amount is necessary to adjust
Page 7, Line 24for inflation. Inflation is measured by the annual percentage
Page 7, Line 25change in the United States department of labor's bureau of
Page 7, Line 26labor statistics consumer price index, or a successor index, for
Page 7, Line 27Denver-Aurora-Lakewood for all items paid for by urban
Page 8, Line 1consumers. The division may investigate
anyPage 8, Line 2on behalf of a group of similarly situated employees. If the division
Page 8, Line 3declines to investigate a group complaint, similarly situated employees
Page 8, Line 4may consent in writing to participate as parties to that complaint, and the
Page 8, Line 5division may pursue a direct investigation informed by and concurrent
Page 8, Line 6with that complaint. The division shall initiate the administrative
Page 8, Line 7procedure by sending a notice of complaint to the employer by mail or
Page 8, Line 8electronic means in accordance with rules as the director may promulgate
Page 8, Line 9when the complaint states a claim for relief. The notice of the complaint
Page 8, Line 10must include:
Page 8, Line 11(III)
The division shall issue a determination within ninety daysPage 8, Line 12
after the notice of complaint is sent unless the division extends the timePage 8, Line 13
period by providing advance written notice to the employee and employerPage 8, Line 14
stating good cause for the extension of time.Page 8, Line 15(8) Nothing in this
article shall be construed to limitPage 8, Line 16limits:
Page 8, Line 17(a) The authority of the district attorney of any county or city and
Page 8, Line 18county, or
the city attorney of any cityPage 8, Line 19by a county or city and county to prosecute criminal offenses
Page 8, Line 20or enforce laws or ordinances related to the payments of
Page 8, Line 21wages, to:
Page 8, Line 22(I) Prosecute actions for
sucharticle asPage 8, Line 234 that may come to
his or herPage 8, Line 24delegated person's knowledge; or
toPage 8, Line 25(II) Enforce
the provisions of this articlePage 8, Line 26independently and without specific direction of the director; or
to limitPage 8, Line 27(b) The right of any wage claimant to sue directly or through an
Page 9, Line 1assignee for any wages or penalty
due him or her under the provisions ofPage 9, Line 2
this articlePage 9, Line 3(9) A city, county, or city and county may enact and
Page 9, Line 4enforce laws related to the payment of wages for work
Page 9, Line 5performed within its jurisdiction if the laws do not diminish the
Page 9, Line 6protections or benefits to employees provided in this article 4.
Page 9, Line 7SECTION 6. In Colorado Revised Statutes, 8-4-113, amend
Page 9, Line 8(5)(a); and add (1)(a)(I.5) as follows:
Page 9, Line 98-4-113. Fines pursuant to enforcement - wage theft
Page 9, Line 10enforcement fund - created - administrative lien and levy of employer
Page 9, Line 11assets - wage claim payments from the fund - definition - rules.
Page 9, Line 12(1) (a) (I.5) An employer found to have misclassified an employee
Page 9, Line 13as a nonemployee in a way that may affect a wage and hour
Page 9, Line 14payment or reporting obligation under a state, federal, or local
Page 9, Line 15law, rule, or regulation shall pay a fine in the following
Page 9, Line 16amounts, increased by the director by rule by January 1, 2028,
Page 9, Line 17and by rule by January 1 every other year based on the prior
Page 9, Line 18two years' increase, if any, in the United States department of
Page 9, Line 19labor's bureau of labor statistics consumer price index, or a
Page 9, Line 20successor index, for Denver-Aurora-Lakewood for urban wage
Page 9, Line 21earners and clerical workers, per employee, in addition to any
Page 9, Line 22other relief ordered:
Page 9, Line 23(A) For a willful violation, five thousand dollars;
Page 9, Line 24(B) For a violation not remedied within sixty days after
Page 9, Line 25the division's finding, ten thousand dollars;
Page 9, Line 26(C) For a second or subsequent willful violation within
Page 9, Line 27five years, twenty-five thousand dollars; or
Page 10, Line 1(D) For a second or subsequent willful violation not
Page 10, Line 2remedied within sixty days after the division's finding, fifty
Page 10, Line 3thousand dollars.
Page 10, Line 4(5) (a) On and after April 1, 2024, if an employer fails to pay an
Page 10, Line 5employee an amount of wages, compensation, or other monetary relief
Page 10, Line 6owed the employee, as determined by the division pursuant to this article
Page 10, Line 74 or article 6 or 12 of this title 8 or as decided by a hearing officer
Page 10, Line 8pursuant to section 8-4-111.5, within
six monthsPage 10, Line 9days after the division's determination, the hearing officer's decision, or
Page 10, Line 10the expiration of
anyPage 10, Line 11a court staying or postponing the employer's payment obligation,
Page 10, Line 12whichever is later, the division may disburse the amount of wages,
Page 10, Line 13compensation, or other monetary relief determined to be owed the
Page 10, Line 14employee, subject to available resources in the fund and the division's
Page 10, Line 15prioritization, from the fund to the employee.
Page 10, Line 16SECTION 7. In Colorado Revised Statutes, amend 8-4-120 as
Page 10, Line 17follows:
Page 10, Line 188-4-120. Discrimination and retaliation prohibited - employee
Page 10, Line 19protections - criminal penalties - civil remedies. (1) An employer, or
Page 10, Line 20any other person that is regularly engaged in business or
Page 10, Line 21commercial activity that has contracted with an employer or
Page 10, Line 22worker, directly or indirectly, for labor from which such
Page 10, Line 23person is the beneficiary, shall not intimidate, threaten, restrain,
Page 10, Line 24coerce, blacklist, discharge, or in any manner discriminate or retaliate
Page 10, Line 25against
anyPage 10, Line 26(a) Filed
anyPage 10, Line 27
anyPage 11, Line 1wages, hours, or employment of minors;
orPage 11, Line 2(b) Testified or provided other evidence, or may testify or provide
Page 11, Line 3other evidence, in
anyPage 11, Line 4person regarding afforded protections under this article 4 or under any
Page 11, Line 5other law or rule related to wages,
orPage 11, Line 6minors; or
Page 11, Line 7(c) Raised concerns in good faith about compliance with
Page 11, Line 8or otherwise provided information as to legal rights and
Page 11, Line 9remedies available under this article 4 or any other law or rule
Page 11, Line 10related to wages or hours to any person.
Page 11, Line 11(2)
An employer whoPage 11, Line 12commits a class 2 misdemeanor.
Page 11, Line 13(3) (a) An employee or worker who alleges a violation of
Page 11, Line 14subsection (1) of this section may file a civil action in a court of
Page 11, Line 15competent jurisdiction against the employer alleged to have violated this
Page 11, Line 16section to seek legal and equitable relief as appropriate to remedy the
Page 11, Line 17violation, including:
Page 11, Line 18(I) Back pay;
Page 11, Line 19(II) Reinstatement of employment or, if reinstatement is not
Page 11, Line 20feasible, front pay;
Page 11, Line 21(III) The payment of wages unlawfully withheld;
Page 11, Line 22(IV) Interest on unpaid wages at a rate of twelve percent per
Page 11, Line 23annum from the date the wages were first due;
Page 11, Line 24(V) The payment of a penalty of fifty dollars per day for each
Page 11, Line 25employee whose rights under this section were violated and for each day
Page 11, Line 26that the violation occurred or continued;
Page 11, Line 27(VI) Liquidated damages in an amount equal to the greater of two
Page 12, Line 1times the amount of the unpaid wages or other lost pay or
Page 12, Line 2compensation or two thousand dollars;
andPage 12, Line 3(VII) Injunctive relief; and
Page 12, Line 4(VIII) Compensatory damages for other economic or
Page 12, Line 5noneconomic loss or injury shown by competent evidence.
Page 12, Line 6(b) If
the employeePage 12, Line 7action brought pursuant to this subsection (3), the court shall award the
Page 12, Line 8
employeePage 12, Line 9(c) (I) In determining whether there has been retaliation
Page 12, Line 10as prohibited in subsection (1) of this section, a fact finder shall
Page 12, Line 11consider the time between an individual's exercise of a protected
Page 12, Line 12activity and an employer's adverse action. A period of ninety or
Page 12, Line 13fewer days between the exercise of a protected activity and the
Page 12, Line 14adverse action may, without more, be sufficient to find
Page 12, Line 15retaliatory intent.
Page 12, Line 16(II) Any effort to use an individual's immigration status
Page 12, Line 17to in any manner discriminate or retaliate against an employee
Page 12, Line 18or worker who has engaged in activity described in subsection
Page 12, Line 19(1) of this section is a violation of this section.
Page 12, Line 20(4) The division may investigate and enforce discrimination or
Page 12, Line 21retaliation prohibited by this article 4 or article 6 of this title 8 and, after
Page 12, Line 22investigation, may order the relief specified in subsection (3)(a) of this
Page 12, Line 23section and reasonable attorney fees and costs.
Page 12, Line 24SECTION 8. Appropriation. For the 2025-26 state fiscal year,
Page 12, Line 25$208,979 is appropriated to the department of labor and employment for
Page 12, Line 26use by the division of labor standards and statistics. This appropriation is
Page 12, Line 27from the general fund and is based on an assumption that the division will
Page 13, Line 1require an additional 1.8 FTE. To implement this act, the division may
Page 13, Line 2use this appropriation for program costs related to labor standards.
Page 13, Line 3SECTION 9. Act subject to petition - effective date -
Page 13, Line 4applicability. (1) This act takes effect at 12:01 a.m. on the day following
Page 13, Line 5the expiration of the ninety-day period after final adjournment of the
Page 13, Line 6general assembly; except that, if a referendum petition is filed pursuant
Page 13, Line 7to section 1 (3) of article V of the state constitution against this act or an
Page 13, Line 8item, section, or part of this act within such period, then the act, item,
Page 13, Line 9section, or part will not take effect unless approved by the people at the
Page 13, Line 10general election to be held in November 2026 and, in such case, will take
Page 13, Line 11effect on the date of the official declaration of the vote thereon by the
Page 13, Line 12governor.
Page 13, Line 13(2) This act applies to conduct occurring on or after the applicable
Page 13, Line 14effective date of this act.