First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0015.02 Yelana Love x2295
HOUSE BILL 25-1001
House Committees Senate Committees
Business Affairs & Labor
A BILL FOR AN ACT
C
ONCERNING THE ENFORCEMENT OF WAGE AND HOUR LAWS .101
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
HOUSE SPONSORSHIP
Duran and Froelich, Bacon, Boesenecker, Clifford, English, Garcia, Hamrick, Lieder,
Mabrey, Martinez, Mauro, Rutinel, Sirota, Titone, Velasco, Willford, Zokaie
SENATE SPONSORSHIP
Danielson and Kolker, Bridges, Cutter, Gonzales J., Hinrichsen, Kipp, Marchman,
Michaelson Jenet, Sullivan, Weissman, Winter F.
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. 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.
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:
! 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.
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.
HB25-1001
-2- 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:
! 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.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 8-4-101, amend (6)2
as follows:3
8-4-101. Definitions. As used in this article 4, unless the context4
otherwise requires:5
(6) "Employer" has the same meaning as set forth in the federal6
"Fair Labor Standards Act of 1938", 29 U.S.C. sec. 203 (d), and includes7
a foreign labor contractor, and
a migratory field labor contractor or crew8
leader,
AND EACH INDIVIDUAL WHO OWNS OR CONTROLS AT LEAST9
TWENTY-FIVE PERCENT OF THE OWNERSHIP INTERESTS IN AN EMPLOYER ;10
except that the provisions of
this article 4 do DOES not apply to the state11
or its agencies or entities; counties; cities and counties; municipal12
corporations; quasi-municipal corporations; school districts; and13
irrigation, reservoir, or drainage conservation companies or districts14
organized and existing under the laws of Colorado.15
HB25-1001-3- SECTION 2. In Colorado Revised Statutes, 8-4-105, amend (2)1
as follows:2
8-4-105. Payroll deductions permitted - notice required.3
(2) Nothing in this section authorizes a deduction below the
APPLICABLE4
minimum wage. applicable under the "Fair Labor Standards Act of 1938",
5
29 U.S.C. sec. 201 et seq.6
SECTION 3. In Colorado Revised Statutes, 8-4-109, amend7
(3)(b) introductory portion; and add (3.5) as follows:8
8-4-109. Termination of employment - payments required -9
civil penalties - payments to surviving spouse or heir. (3) (b) On or10
after January 1, 2023 EXCEPT AS PROVIDED IN SUBSECTION (3.5) OF THIS11
SECTION, if an employer fails or refuses to pay, in the manner specified12
in subsection (3)(d) of this section, all earned, vested, and determinable13
wages or compensation within fourteen days after the A written demand14
is sent or within fourteen days after a civil action or administrative claim15
for the wages or compensation is sent to or served on the employer, the16
employer is liable to the employee or group of similarly situated17
employees for the amount of the earned, vested, determinable, and unpaid18
wages or compensation plus an automatic penalty of:19
(3.5) T
HE DIRECTOR MAY WAIVE THE PENALTY SPECIFIED IN20
SUBSECTION (3)(b) OF THIS SECTION FOR AN EMPLOYER'S FAILURE TO PAY21
CLAIMED WAGES OR COMPENSATION WITHIN FOURTEEN DAYS AFTER A22
WRITTEN DEMAND IF THE EMPLOYER PAYS ALL CLAIMED WAGES OR23
COMPENSATION WITHIN FOURTEEN DAYS AFTER AN ADMINISTRATIVE24
CLAIM FOR THE SAME WAGES OR COMPENSATION IS SENT TO OR SERVED ON25
THE EMPLOYER. THE DIRECTOR SHALL NOT WAIVE THE PENALTY IF THE26
ALLEGED VIOLATION IS A SECOND OR SUBSEQUENT FAILURE OR REFUSAL27
HB25-1001
-4- TO PAY AN EMPLOYEE'S WAGES OR COMPENSATION WITHIN FIVE YEARS .1
SECTION 4. In Colorado Revised Statutes, 8-4-110, amend (2);2
and repeal (1)(a) as follows:3
8-4-110. Disputes - fees. (1) (a) The court may award the4
employer reasonable costs and attorney fees incurred in a civil action if,5
within fourteen days after a written demand letter is sent to or a civil6
action is served on the employer for unpaid wages or compensation:7
(I) The employer makes full legal tender of all amounts demanded8
in good faith for all employees; and9
(II) The employees receiving such tender ultimately fail to recover10
a total sum that is greater than the amount the employer tendered.11
(2) Any IN ADDITION TO OTHER RELIEF AVAILABLE TO EMPLOYEES12
UNDER THIS TITLE 8, A person claiming to be aggrieved by A violation of13
any provisions of this article or regulations prescribed pursuant to this14
article THIS ARTICLE 4 OR ANY OTHER LAW OR RULE RELATED TO WAGES15
OR HOURS may file suit in any court having jurisdiction over the parties16
TO PURSUE ALL AVAILABLE EQUITABLE RELIEF , INCLUDING EQUITABLE17
RELIEF TO DETER FUTURE VIOLATIONS AND PREVENT UNJUST ENRICHMENT ,18
without regard to exhaustion of any administrative remedies.19
SECTION 5. In Colorado Revised Statutes, 8-4-111, amend20
(1)(a)(II), (2)(a)(I) introductory portion, and (8); repeal (2)(a)(III); and21
add (1)(a.5) as follows:22
8-4-111. Enforcement - duty of director - duties of district or23
city attorneys - rules. (1) (a) (II) The director may establish an24
administrative procedure to receive complaints and adjudicate claims for25
nonpayment of wages or compensation of:26
(A) Seven thousand five hundred dollars or less
FOR CLAIMS FILED27
HB25-1001
-5- THROUGH JUNE 30, 2026;1
(B) T
HIRTEEN THOUSAND DOLLARS OR LESS FOR CLAIMS FILED2
FROM JULY 1, 2026, THROUGH DECEMBER 31, 2027; AND3
(C) A
N AMOUNT THAT THE DIRECTOR SPECIFIES IN RULE BY4
J
ANUARY 1, 2028, AND BY RULE FOR EVERY OTHER YEAR THEREAFTER .5
S
UCH AMOUNT MUST BE EQUAL TO THE AMOUNT IN THE PREVIOUS6
CALENDAR YEAR INCREASED BY ONE THOUS AND DOLLARS OR A HIGHER7
AMOUNT IF SUCH HIGHER AMOUNT IS NECESSARY TO ADJUST FOR8
INFLATION. INFLATION IS MEASURED BY THE ANNUAL PERCENTAGE9
CHANGE IN THE UNITED STATES DEPARTMENT OF LABOR 'S BUREAU OF10
LABOR STATISTICS CONSUMER PRICE INDEX , OR A SUCCESSOR INDEX, FOR11
D
ENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID FOR BY URBAN12
CONSUMERS.13
(a.5) I
N CARRYING OUT THE DUTIES SPECIFIED IN SUBSECTION14
(1)(a)(I)
OF THIS SECTION, THE DIRECTOR:15
(I) S
HALL PUBLISH ON THE DIVISION 'S WEBSITE, FOR ANY16
VIOLATION THAT IS A MATTER OF PUBLIC RECORD PURSUANT TO SECTION17
8-1-115 (1)(b),
THE CITATION, DETERMINATION, OR WRITTEN OPINION;18
WHETHER THE VIOLATION WAS WILLFUL ; AND THE NAMES OF ALL19
EMPLOYERS IN VIOLATION;20
(II) S
HALL REPORT AN EMPLOYER WITH A WILLFUL VIOLATION21
UNREMEDIED WITHIN SIXTY DAYS AFTER THE DIVISION 'S FINDING TO ANY22
GOVERNMENT BODY WITH AUTHORITY TO DENY , WITHDRAW, OR23
OTHERWISE LIMIT OR IMPOSE REMEDIAL CONDITIONS ON THE EMPLOYER 'S24
LICENSE, PERMIT, REGISTRATION, OR OTHER CREDENTIAL. THE DIVISION25
MAY POST A DECISION AGAINST AN EMPLOYER BY A GOVERNMENT BODY26
ON THE DIVISION'S WEBSITE.27
HB25-1001
-6- (III) MAY REPORT AN EMPLOYER FOUND TO HAVE VIOLATED A LAW1
RELATED TO WAGES AND HOURS TO A GOVERNMENT BODY WITH2
AUTHORITY TO DENY , WITHDRAW, OR OTHERWISE LIMIT OR IMPOSE3
REMEDIAL CONDITIONS ON THE EMPLOYER 'S LICENSE, PERMIT,4
REGISTRATION, OR OTHER CREDENTIAL . THE DIVISION MAY POST A5
DECISION AGAINST AN EMPLOYER BY A GOVERNMENT BODY ON THE6
DIVISION'S WEBSITE.7
(2) (a) (I) T
HE DIVISION SHALL INVESTIGATE A WAGE COMPLAINT8
if one or more employees file a
THE wage complaint with the division9
claiming unpaid wages or compensation,
EXCLUSIVE OF PENALTIES AND10
FINES, of seven thousand five hundred dollars or less per employee11
exclusive of penalties and fines, the division shall investigate the wage
12
complaint FOR CLAIMS FILED THROUGH JUNE 30, 2026; THIRTEEN13
THOUSAND DOLLARS OR LESS FOR CLAIMS FILED FROM JULY 1, 2026,14
THROUGH DECEMBER 31, 2027; AND AN AMOUNT THAT THE DIRECTOR15
SPECIFIES IN RULE BY JANUARY 1, 2028, AND BY RULE FOR EVERY OTHER16
YEAR THEREAFTER. SUCH AMOUNT MUST BE EQUAL TO THE AMOUNT IN17
THE PREVIOUS CALENDAR YEAR INCREASED BY ONE THOUSAND DOLLARS18
OR A HIGHER AMOUNT IF SUCH HIGHER AMOUNT IS NECESSARY TO ADJUST19
FOR INFLATION. INFLATION IS MEASURED BY THE ANNUAL PERCENTAGE20
CHANGE IN THE UNITED STATES DEPARTMENT OF LABOR 'S BUREAU OF21
LABOR STATISTICS CONSUMER PRICE INDEX , OR A SUCCESSOR INDEX, FOR22
D
ENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID FOR BY URBAN23
CONSUMERS. The division may investigate any
A wage complaint made24
on behalf of a group of similarly situated employees. If the division25
declines to investigate a group complaint, similarly situated employees26
may consent in writing to participate as parties to that complaint, and the27
HB25-1001
-7- division may pursue a direct investigation informed by and concurrent1
with that complaint. The division shall initiate the administrative2
procedure by sending a notice of complaint to the employer by mail or3
electronic means in accordance with rules as the director may promulgate4
when the complaint states a claim for relief. The notice of the complaint5
must include:6
(III) The division shall issue a determination within ninety days7
after the notice of complaint is sent unless the division extends the time8
period by providing advance written notice to the employee and employer9
stating good cause for the extension of time.10
(8) Nothing in this article shall be construed to limit ARTICLE 411
LIMITS the authority of the district attorney of any county or city and12
county or the city attorney of any city to prosecute actions for such13
violations of this article ARTICLE 4 as may come to his or her A DISTRICT14
ATTORNEY'S OR A CITY ATTORNEY 'S knowledge, or to enforce the15
provisions of this article THIS ARTICLE 4 independently and without16
specific direction of the director, or to limit the right of any wage17
claimant to sue directly or through an assignee for any wages, or penalty,18
due him or her under the provisions of this article OR OTHER RELIEF19
AVAILABLE PURSUANT TO THIS ARTICLE 4. A LOCAL OR STATE ENTITY20
WITH AUTHORITY TO ENFORCE THIS ARTICLE 4, INCLUDING THE DISTRICT21
ATTORNEY OF A COUNTY OR CITY AND COUNTY , A CITY ATTORNEY OF ANY22
CITY, AND THE ATTORNEY GENERAL , MAY PURSUE ANY RELIEF23
AUTHORIZED BY THIS ARTICLE 4.24
SECTION 6. In Colorado Revised Statutes, 8-4-113, amend25
(5)(a); and add (1)(a)(I.5) as follows:26
8-4-113. Fines pursuant to enforcement - wage theft27
HB25-1001
-8- enforcement fund - created - administrative lien and levy of employer1
assets - wage claim payments from the fund - definition - rules.2
(1) (a) (I.5) A
N EMPLOYER FOUND TO HAVE MISCLASSIFIED AN EMPLOYEE3
AS A NONEMPLOYEE IN A WAY THAT MAY AFFECT A WAGE AND HOUR4
PAYMENT OR REPORTING OBLIGATION UNDER A STATE , FEDERAL, OR LOCAL5
LAW, RULE, OR REGULATION SHALL PAY A FINE IN THE FOLLOWING6
AMOUNTS, INCREASED BY THE DIRECTOR BY RULE BY JANUARY 1, 2028,7
AND BY RULE BY JANUARY 1 EVERY OTHER YEAR BASED ON THE PRIOR8
TWO YEARS' INCREASE, IF ANY, IN THE UNITED STATES DEPARTMENT OF9
LABOR'S BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX , OR A10
SUCCESSOR INDEX, FOR DENVER-AURORA-LAKEWOOD FOR URBAN WAGE11
EARNERS AND CLERICAL WORKERS , PER EMPLOYEE, IN ADDITION TO ANY12
OTHER RELIEF ORDERED:13
(A) F
OR A WILLFUL VIOLATION, FIVE THOUSAND DOLLARS;14
(B) F
OR A VIOLATION NOT REMEDIED WITHIN SIXTY DAYS AFTER15
THE DIVISION'S FINDING, TEN THOUSAND DOLLARS;16
(C) F
OR A SECOND OR SUBSEQUENT WILLFUL VIOLATION WITHIN17
FIVE YEARS, TWENTY-FIVE THOUSAND DOLLARS; OR18
(D) F
OR A SECOND OR SUBSEQUENT WILLFUL VIOLATION NOT19
REMEDIED WITHIN SIXTY DAYS AFTER THE DIVISION 'S FINDING, FIFTY20
THOUSAND DOLLARS.21
(5) (a) On and after April 1, 2024, if an employer fails to pay an22
employee an amount of wages, compensation, or other monetary relief23
owed the employee, as determined by the division pursuant to this article24
4 or article 6 or 12 of this title 8 or as decided by a hearing officer25
pursuant to section 8-4-111.5, within six months
ONE HUNDRED TWENTY26
DAYS after the division's determination, the hearing officer's decision, or27
HB25-1001
-9- the expiration of any AN order from the division, the hearing officer, or1
a court staying or postponing the employer's payment obligation,2
whichever is later, the division may disburse the amount of wages,3
compensation, or other monetary relief determined to be owed the4
employee, subject to available resources in the fund and the division's5
prioritization, from the fund to the employee.6
SECTION 7. In Colorado Revised Statutes, amend 8-4-120 as7
follows:8
8-4-120. Discrimination and retaliation prohibited - employee9
protections - criminal penalties - civil remedies. (1) An employer,
OR10
ANY OTHER PERSON THAT IS REGULARLY ENGAGED IN BUSINESS OR11
COMMERCIAL ACTIVITY THAT HAS CONTRACTED WITH AN EMPLOYER OR12
WORKER, DIRECTLY OR INDIRECTLY, FOR LABOR FROM WHICH SUCH13
PERSON IS THE BENEFICIARY, shall not intimidate, threaten, restrain,14
coerce, blacklist, discharge, or in any manner discriminate or retaliate15
against any
AN employee OR WORKER who has:16
(a) Filed any A complaint or instituted or caused to be instituted17
any A proceeding under this article 4 or any other law or rule related to18
wages, hours, or employment of minors; or19
(b) Testified or provided other evidence, or may testify or provide20
other evidence, in any A proceeding on behalf of the employee or another21
person regarding afforded protections under this article 4 or under any22
other law or rule related to wages, or hours, OR THE EMPLOYMENT OF23
MINORS; OR24
(c) R
AISED CONCERNS IN GOOD FAITH ABOUT COMPLIANCE WITH25
OR OTHERWISE PROVIDED INFORMATION AS TO LEGAL RIGHTS AND26
REMEDIES AVAILABLE UNDER THIS ARTICLE 4 OR ANY OTHER LAW OR RULE27
HB25-1001
-10- RELATED TO WAGES OR HOURS TO ANY PERSON .1
(2) An employer who A PERSON THAT violates this section2
commits a class 2 misdemeanor.3
(3) (a) An employee
OR WORKER who alleges a violation of4
subsection (1) of this section may file a civil action in a court of5
competent jurisdiction against the employer alleged to have violated this6
section to seek legal and equitable relief as appropriate to remedy the7
violation, including:8
(I) Back pay;9
(II) Reinstatement of employment or, if reinstatement is not10
feasible, front pay;11
(III) The payment of wages unlawfully withheld;12
(IV) Interest on unpaid wages at a rate of twelve percent per13
annum from the date the wages were first due;14
(V) The payment of a penalty of fifty dollars per day for each15
employee whose rights under this section were violated and for each day16
that the violation occurred or continued;17
(VI) Liquidated damages in an amount equal to the greater of two18
times the amount of the unpaid wages
OR OTHER LOST PAY OR19
COMPENSATION or two thousand dollars; and
20
(VII) Injunctive relief;
AND21
(VIII) C
OMPENSATORY DAMAGES FOR OTHER ECONOMIC OR22
NONECONOMIC LOSS OR INJURY SHOWN BY COMPETENT EVIDENCE .23
(b) If the employee
AN AGGRIEVED PERSON prevails in a civil24
action brought pursuant to this subsection (3), the court shall award the25
employee PERSON reasonable attorney fees and costs.26
(c) (I) I
N DETERMINING WHETHER THERE HAS BEEN RETALIATION27
HB25-1001
-11- AS PROHIBITED IN SUBSECTION (1) OF THIS SECTION, A FACT FINDER SHALL1
CONSIDER THE TIME BETWEEN AN INDIVIDUAL 'S EXERCISE OF A PROTECTED2
ACTIVITY AND AN EMPLOYER'S ADVERSE ACTION. A PERIOD OF NINETY OR3
FEWER DAYS BETWEEN THE EXERCISE OF A PROTECTED ACTIVITY AND THE4
ADVERSE ACTION MAY , WITHOUT MORE , BE SUFFICIENT TO FIND5
RETALIATORY INTENT.6
(II) A
NY EFFORT TO USE AN INDIVIDUAL'S IMMIGRATION STATUS7
TO NEGATIVELY IMPACT THE WAGE AND HOUR LAW RIGHTS ,8
RESPONSIBILITIES, OR PROCEEDINGS OF ANY EMPLOYEE OR WORKER IS AN9
ACT OF INTIMIDATION, THREATENING, COERCION, DISCRIMINATION, AND10
RETALIATION IN VIOLATION OF SUBSECTION (1) OF THIS SECTION.11
(4) The division may investigate and enforce discrimination or12
retaliation prohibited by this article 4 or article 6 of this title 8 and, after13
investigation, may order the relief specified in subsection (3)(a) of this14
section
AND REASONABLE ATTORNEY FEES AND COSTS .15
SECTION 8. Act subject to petition - effective date -16
applicability. (1) This act takes effect at 12:01 a.m. on the day following17
the expiration of the ninety-day period after final adjournment of the18
general assembly; except that, if a referendum petition is filed pursuant19
to section 1 (3) of article V of the state constitution against this act or an20
item, section, or part of this act within such period, then the act, item,21
section, or part will not take effect unless approved by the people at the22
general election to be held in November 2026 and, in such case, will take23
effect on the date of the official declaration of the vote thereon by the24
governor.25
(2) This act applies to conduct occurring on or after the applicable26
effective date of this act.27
HB25-1001
-12-