Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 24-0124.02 Yelana Love x2295
HOUSE BILL 24-1008
House Committees Senate Committees
Business Affairs & Labor
Appropriations
A BILL FOR AN ACT
C
ONCERNING MEASURES TO EXPAND GENERAL CONTRACTOR101
ACCOUNTABILITY FOR WAGE CLAIMS INVOLVING CONTRACTORS102
IN THE CONSTRUCTION
INDUSTRY, AND, IN CONNECTION103
THEREWITH, MAKING AN APPROPRIATION .104
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
.)
For wage claims brought by individuals working in the
construction industry, the bill:
! Requires that a subcontractor that receives a written
HOUSE
Amended 2nd Reading
April 18, 2024
HOUSE SPONSORSHIP
Duran and Froelich, Brown, deGruy Kennedy, Epps, Garcia, Hamrick, Hernandez, Joseph,
Lieder, Lindstedt, Mabrey, Mauro, Ricks, Rutinel, Story, Velasco, Vigil
SENATE SPONSORSHIP
Danielson, Exum, Gonzales, Kolker, Marchman, Sullivan
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. demand for payment forward a copy of the written demand
for payment to the general contractor within 3 business
days after receipt;
! Specifies that a general contractor and a subcontractor that
is a direct employer of an employee are jointly and
severally liable for all debts owed based on a wage claim or
investigation that are incurred by the subcontractor acting
under, by, or for the general contractor; and
! Allows a general contractor to require the following
information from each subcontractor acting under, by, or
for the general contractor:
! Pay data;
! Contact information; and
! An affidavit attesting to whether the subcontractor
has participated in a civil or administrative
proceeding within the last 5 years and, if so, the
outcome of the proceeding.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds and declares that:3
(a) Wage theft, the failure to pay an employee the employee's4
legally earned wages, is the largest form of theft in the United States, and5
the Colorado Fiscal Institute estimates that wage theft transfers nearly6
$728 million dollars to employers from the pockets of approximately7
438,260 Colorado workers each year. Minor workers, women, and8
workers of color are disproportionately impacted by wage theft. 9
(b) Wage theft not only affects Coloradans' ability to pay rent and10
put food on the table, but it also denies our state and local governments11
between $25 million and $42 million in revenue each year;12
(c) To combat wage theft, the state must keep up with changes in13
the marketplace. One of the most significant changes involves the14
increasing use of labor market intermediaries to directly employ workers.15
Too often, this fissuring of the labor market is used to outsource an16
1008-2- employer's responsibility to workers required by labor and employment1
laws.2
(d) Construction is an industry with extraordinary labor market3
fissuring, with layers upon layers of contractors, subcontractors, labor4
brokers, staffing agencies, etc. This incentivizes wage theft by favoring5
inexpensive subcontractors. It also creates barriers to wage recovery6
because undercapitalized subcontractors can't or won't pay wages. 7
(e) Due in part to these practices, workers in the construction8
industry are disproportionately likely to experience wage theft. Federal9
Department of Labor, Wage and Hour Division data show that Colorado's10
construction industry has double the number of wage theft violations that11
it should have in proportion to the number of workers in the industry.12
This is consistent with Colorado Department of Labor and Employment13
data showing that while only 7% of Colorado workers are in construction,14
construction workers make up 17% of administrative wage theft15
complaints that are found valid after a full agency investigation. 16
(f) Federal data also show that in fiscal years 2022 and 2023, the17
construction industry saw the highest dollar amount of wage theft of any18
industry, totaling over $35 million in federal fiscal year 2023 alone. In19
addition, the construction industry has among the highest number of20
individual workers who are victims of wage theft.21
(g) To effectively combat wage theft in the construction industry,22
the state needs a tailored solution to ensure not only that workers have23
substantive legal protection against wage theft, but also that the state has24
the right alignment of business incentives to prevent wage theft before it25
happens and the right access to capital to ensure that workers can recover26
stolen wages;27
1008
-3- (h) Creating general contractor accountability for wage theft1
committed on their projects by a subcontractor at any tier provides such2
a tailored solution. Such accountability will enlist general contractors in3
the fight against wage theft, incentivize engagement with law-abiding4
subcontractors who pay their workers correctly, and encourage general5
contractors to root out bad actors who underbid for contracts knowing6
they will make up the difference by denying their workers the wages they7
earned.8
(i) While creating general contractor liability for wage claims, this9
act will also ensure that general contractors can efficiently seek10
reimbursement from subcontractor employers for any amounts paid out11
for wage claims owed to the subcontractors' employees. In this way, the12
act will ensure that workers get paid, but will not leave general13
contractors on the hook for a subcontractor's wage debts.14
(j) This act narrowly focuses on general contractor liability for15
wage debts owed to the workers on their projects who were engaged by16
the general contractor's subcontractors at any tier. Such liability does not17
extend to wage debts owed to the workers of general contractor suppliers18
or other business partners. Also, liability for debts owed based on a wage19
claim or investigation does not include liability for a subcontractor's20
retaliatory acts.21
(k) This act does not alter the division of labor standards and22
statistics' existing obligation to treat a notice of citation or a notice of23
assessment issued to an employer for a violation of wage law as a public24
record pursuant to section 8-1-115 (1)(b), Colorado Revised Statutes, and25
does not require the additional publication of a notice of citation or a26
notice of assessment issued to a general contractor that is not the27
1008
-4- employer of an employee who is the victim of wage theft;1
(l) With this act, Colorado hopes not only to ensure that workers2
get paid their legally earned wages, but also to partner with the many3
general contractors who are abiding by the law and want to ensure all4
workers on their job sites are paid in full and on time; and5
(m) Therefore, the general assembly declares that wage theft is an6
unacceptable business practice, and the state should use or adopt all7
available tools to prevent wage theft before it happens and give workers8
the means to recover stolen wages.9
SECTION 2. In Colorado Revised Statutes, 8-4-101, add (1.5),10
(8.7), (11.5), and (12.5) as follows:11
8-4-101. Definitions. As used in this article 4, unless the context12
otherwise requires:13
(1.5) "C
ONSTRUCTION CONTRACT " MEANS AN EXPRESS OR IMPLIED14
AGREEMENT:15
(a) F
OR THE CONSTRUCTION , RECONSTRUCTION, ALTERATION,16
MAINTENANCE, MOVING, OR DEMOLITION OF ANY BUILDING, STRUCTURE,17
OR IMPROVEMENT; OR18
(b) R
ELATING TO THE EXCAVATION OF OR OTHER DEVELOPMENT19
OF OR IMPROVEMENT TO LAND .20
(8.7) "G
ENERAL CONTRACTOR" MEANS ANY PERSON, INCLUDING21
A CONSTRUCTION MANAGER , JOINT VENTURE, OR ANY COMBINATION22
THEREOF, ALONG WITH THE PERSON'S SUCCESSORS, HEIRS, OR ASSIGNS,23
THAT ENTERS INTO A CONSTRUCTION CONTRACT WITH AN OWNER .24
"G
ENERAL CONTRACTOR " INCLUDES AN OWNER THAT ENTERS INTO A25
CONSTRUCTION CONTRACT WITH MORE THAN ONE CONTRACTOR OR26
SUBCONTRACTOR, IF SUCH CONTRACT RELATES TO REAL PROPERTY OTHER27
1008
-5- THAN PROPERTY FOR WHICH THE OWNER COULD CLAIM THE HOMESTEAD1
EXEMPTION PURSUANT TO PART 2 OF ARTICLE 41 OF TITLE 38.2
(11.5) "O
WNER" MEANS ANY PERSON WITH AN OWNERSHIP3
INTEREST IN REAL PROPERTY , WHETHER THE INTEREST IS IN FEE , AS4
VENDEE UNDER A CONTRACT TO PURCHASE , AS LESSEE, OR ANOTHER5
INTEREST OR ESTATE LESS THAN FEE.6
(12.5) "S
UBCONTRACTOR" MEANS ANY PERSON THAT IS A PARTY7
TO AN EXPRESS OR IMPLIED CONTRACT WITH A GENERAL CONTRACTOR OR8
WITH A GENERAL CONTRACTOR 'S SUBCONTRACTORS AT ANY TIER TO9
PERFORM ANY PORTION OF WORK WITHIN THE SCOPE OF THE GENERAL10
CONTRACTOR'S CONSTRUCTION CONTRACT WITH THE OWNER , INCLUDING11
A PERSON THAT HAS NO DIRECT PRIVITY OF CONTRACT WITH THE GENERAL12
CONTRACTOR.13
SECTION
3. In Colorado Revised Statutes, 8-4-109, add (3)(a.3)14
as follows:15
8-4-109. Termination of employment - payments required -16
civil penalties - payments to surviving spouse or heir. (3) (a.3) (I) I
F17
AN EMPLOYER THAT RECEIVES A WR ITTEN DEMAND FOR PAYMENT UNDER18
SUBSECTION (3)(a) OF THIS SECTION IS A SUBCONTRACTOR, THE EMPLOYER19
SHALL FORWARD A COPY OF THE WRITTEN DEMAND FOR PAYMENT TO THE20
GENERAL CONTRACTOR WITHIN THREE BUSINESS DAYS AFTER RECEIVING21
THE WRITTEN DEMAND . THE EMPLOYER SHALL ALSO SIMULTANEOUSLY22
SEND TO THE WAGE CLAIMANT A COPY OF THE CORRESPONDENCE SENT TO23
THE GENERAL CONTRACTOR AND THE GENERAL CONTRACTOR 'S NAME AND24
ADDRESS.25
(II) A
N EMPLOYER THAT FAILS TO FORWARD A WRITTEN DEMAND26
FOR PAYMENT TO A GENERAL CONTRACTOR AS REQUIRED IN SUBSECTION27
1008
-6- (3)(a.3)(I) OF THIS SECTION IS SUBJECT TO A FINE OF TWO THOUSAND1
DOLLARS, PAID TO THE GENERAL CONTRACTOR , IN ADDITION TO ANY2
AMOUNTS OWED PURSUANT TO SECTION 8-4-110.5 OR ANY OTHER LAW.3
SECTION 4. In Colorado Revised Statutes, add 8-4-110.5 as4
follows:5
8-4-110.5. General contractor responsibility for wage claims6
in the construction industry. (1) (a) A GENERAL CONTRACTOR7
ENTERING INTO A CONSTRUCTION CONTRACT IN THIS STATE IS LIABLE FOR8
ALL AMOUNTS OWED TO AN EMPLOYEE PURSUANT TO THIS ARTICLE 4 OR9
ARTICLE 6 OF THIS TITLE 8 FOR THE EMPLOYEE'S LABOR, CONSTRUCTION,10
OR OTHER WORK INCLUDED WITHIN THE SCOPE OF THE CONSTRUCTION11
CONTRACT, INCLUDING AMOUNTS OWED BY A SUBCONTRACTOR AT ANY12
TIER ACTING UNDER, BY, OR FOR THE GENERAL CONTRACTOR OR THE13
GENERAL CONTRACTOR 'S SUBCONTRACTORS.14
(b) THE GENERAL CONTRACTOR'S RESPONSIBILITY UNDER15
SUBSECTION (1)(a) OF THIS SECTION DOES NOT EXTEND TO DAMAGES16
OWED FOR RETALIATION COMMITTED BY A SUBCONTRACTOR PURS UANT TO17
SECTION 8-4-120 (3).18
(2) UNLESS THE VIOLATION IS CAUSED BY THE GENERAL19
CONTRACTOR'S LACK OF PAYMENT TO THE SUBCONTRACTOR IN20
ACCORDANCE WITH THE TERMS OF THE CONTRACT BETWEEN THE GENERAL21
CONTRACTOR AND THE SUBCONTRACTOR :22
(a) A SUBCONTRACTOR EMPLOYER SHALL INDEMNIFY THE23
GENERAL CONTRACTOR FOR :24
(I) ALL AMOUNTS OWED BY THE GENERAL CONTRACTOR PURSUANT25
TO SUBSECTION (1) OF THIS SECTION DUE TO THE SUBCONTRACTOR'S26
VIOLATION OF THIS ARTICLE 4 OR ARTICLE 6 OF THIS TITLE 8; AND27
1008
-7- (II) ALL ATTORNEY FEES PAID BY THE GENERAL CONTRACTOR TO1
DEFEND AGAINST LIABILITY FOR SUBCONTRACTOR VIOLATIONS OF THIS2
ARTICLE 4 OR ARTICLE 6 OF THIS TITLE 8;3
(b) A GENERAL CONTRACTOR MAY BRING A CROSSCLAIM FOR4
INDEMNIFICATION AGAINST THE SUBCONTRACTOR EMPLOYER IN ANY5
ACTION RELATED TO THE WAGE CLAIM .6
(3) A SUBCONTRACTOR'S FAILURE TO INDEMNIFY THE GENERAL7
CONTRACTOR IS NOT A DEFENSE TO ANY ACTION BROUGHT AGAINST THE8
GENERAL CONTRACTOR PURSUANT TO SUBSECTION (1) OF THIS SECTION.9
(4) A GENERAL CONTRACTOR MAY REQUIRE THE FOLLOWING10
INFORMATION FROM EACH SUBCONTRACTOR ACTING UNDER , BY, OR FOR11
THE GENERAL CONTRACTOR :12
(a) P
AY DATA SHOWING THE HOURS WORKED , PAY, OVERTIME, AND13
DEDUCTIONS FOR EACH INDIVIDUAL WORKER ENGAGED BY THE14
SUBCONTRACTOR, REGARDLESS OF WHETHER THE INDIVIDUAL WORKER IS15
CLASSIFIED AS AN EMPLOYEE OR AN INDEPENDENT CONTRACTOR 'S16
INDIVIDUAL LABORER. THE SUBCONTRACTOR SHALL REDACT THESE17
RECORDS TO DISCLOSE ONLY THE LAST FOUR DIGITS OF THE INDIVIDUAL18
WORKER'S SOCIAL SECURITY NUMBER OR INDIVIDUAL TAXPAYER19
IDENTIFICATION NUMBER.20
(b) C
ONTACT INFORMATION FOR ALL ADDITIONAL21
SUBCONTRACTORS THAT PERFORM ANY PORTION OF WORK WITHIN THE22
SCOPE OF THE SUBCONTRACTOR 'S CONTRACT WITH THE GENERAL23
CONTRACTOR OR WITH ANOTHER SUBCONTRACTOR THAT IS IN PRIVITY OF24
CONTRACT WITH THE GENERAL CONTRACTOR ; AND25
(c) (I) A
N AFFIDAVIT ATTESTING TO WHETHER THE26
SUBCONTRACTOR OR ANY OF ITS CURRENT PRINCIPALS HAS PARTICIPATED27
1008
-8- IN ANY CIVIL OR ADMINISTRATIVE PROCEEDING WITHIN THE PRECEDING1
FIVE YEARS THAT INVOLVED ANY ALLEGATIONS OF A WAGE AND HOUR2
VIOLATION AGAINST THE SUBCONTRACTOR OR PRINCIPAL UNDER LOCAL ,3
STATE, OR FEDERAL LAW; AND4
(II) I
F THE PROCEEDING IS COMPLETE , THE OUTCOME OF THE5
PROCEEDING, INCLUDING ANY DAMAGES , FEES, OR PENALTY AMOUNTS6
PAID TO WORKERS OR TO A GOVERNMENT AGENCY .7 (5) A SUBCONTRACTOR'S FAILURE TO COMPLY WITH THIS SECTION8
DOES NOT RELIEVE A GENERAL CONTRACTOR FROM LIABILITY UNDER9
SUBSECTION (1) OF THIS SECTION.10
(6) (a) NOTHING IN THIS SECTION DIMINISHES THE RIGHTS ,11
PRIVILEGES, OR REMEDIES OF ANY EMPLOYEE UNDER ANY COLLECTIVE12
BARGAINING AGREEMENT .13
(b) A
COLLECTIVE BARGAINING AGREEMENT MAY WAIVE THE14
REQUIREMENTS OF THIS SECTION IF THE AGREEMENT :15
(I) I
S ENTERED INTO BY A BONA FIDE BUILDING AND16
CONSTRUCTION TRADE LABOR ORGANIZATION THAT HAS ESTABLISHED17
ITSELF OR ITS AFFILIATES AS THE COLLECTIVE BARGAINING18
REPRESENTATIVE FOR PERSONS PERFORMING WORK ON A PROJECT ;19
(II) CONTAINS A GRIEVANCE PROCEDURE THAT RESULTS IN A FINAL20
AND BINDING DECISION;21
(III) MAY BE USED TO RECOVER UNPAID WAGES ON BEHALF OF22
EMPLOYEES COVERED BY THE AGREEMENT ;23
(IV) PROVIDES FOR THE COLLECTION OF UNPAID CONTRIBUTIONS24
TO FRINGE BENEFIT TRUST FUNDS ESTABLISHED PURSUANT TO 29 U.S.C.25
SEC. 186 (c)(5) AND (c)(6), BY OR ON BEHALF OF SUCH TRUST FUNDS; AND26
(V) DOES NOT DIMINISH OR IMPAIR THE RIGHTS OF AN EMPLOYEE27
1008
-9- PROVIDED UNDER ANY OTHER SECTION OF THIS ARTICLE 4.1
SECTION 5. Appropriation. (1) For the 2024-25 state fiscal2
year, $55,179 is appropriated to the department of labor and employment3
for use by the division of labor standards and statistics. This appropriation4
is from the general fund. To implement this act, the division may use this5
appropriation for program costs related to labor standards. This amount6
is based on an assumption that the division will require an additional 0.57
FTE.8
(2) For the 2024-25 state fiscal year, $44,807 is appropriated to9
the department of personnel for use by the executive director's office.10
This appropriation is from the general fund. To implement this act, the11
department may use this appropriation for the purchase of legal services. 12
(3) For the 2024-25 state fiscal year, $44,807 is appropriated to13
the department of law. This appropriation is from reappropriated funds14
received from the department of personnel under subsection (2) of this15
section and is based on an assumption that the department of law will16
require an additional 0.2 FTE. To implement this act, the department of17
law may use this appropriation to provide legal services for the18
department of personnel.19
SECTION 6. Act subject to petition - effective date -20
applicability. (1) This act takes effect July 1, 2025; except that, if a21
referendum petition is filed pursuant to section 1 (3) of article V of the22
state constitution against this act or an item, section, or part of this act23
within the ninety-day period after final adjournment of the general24
assembly, then the act, item, section, or part will not take effect unless25
approved by the people at the general election to be held in November26
2024 and, in such case, will take effect July 1, 2025, or on the date of the27
1008
-10- official declaration of the vote thereon by the governor, whichever is1
later.2
(2) This act applies to wage claims brought and investigations3
commenced on or after the applicable effective date of this act.4
1008
-11-