HB 25-1001 Colorado House · 2025 Regular Session

Enforcement Wage Hour Laws

Summary

The act: 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; Prohibits an employer from making a payroll deduction below a worker's applicable minimum wage; 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; and Requires a court to find that an employee pursued a wage claim that lacked substantial justification before awarding an employer reasonable costs and attorney fees in a civil action for unpaid wages or compensation. 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. The act increases this threshold over the years by increasing the maximum 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. The act 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 was willful and 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 of the unremedied willful violation. 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 the employer's license, permit, registration, or other credential. The act also repeals language requiring the division to issue a determination on a wage complaint within 90 days and clarifies that a city or county may enact and enforce wage laws within the city or county's jurisdiction. An employer found to have misclassified an employee as a nonemployee must 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. The act 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. The act expands this provision to specify additional protected behavior and expands the prohibition to include other persons in addition to employers. The act 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 it is a violation to use an individual's immigration status to discriminate or retaliate against an employee or worker who has engaged in protected activity; and Allows the division to order reasonable attorney fees and costs after investigating a discrimination or retaliation claim. Between August 1, 2027, and October 1, 2027, the division must report to the joint budget committee on its progress in implementing the act. In state fiscal year 2025-26, $328,210 is appropriated to the department of labor and employment for use by the division to implement the act. (Note: This summary applies to this bill as enacted.)

Issues: ✓ Labor & Employment

Bill status signed all 5 stages cleared

Introduction

Jan 2025

Committee Review

Apr 2025

House Passage

Apr 2025

Senate Passage

May 2025

Signed into Law

May 2025

Introduced Jan 8, 2025 Signed May 22, 2025

Maddy AI version diff · 9 comparisons

What changed between versions

Revised (05/02/2025) → PA3 (04/30/2025) · 3 edits

MINOR

The bill's status changed from a formally revised version to a pre-amended draft, indicating it is still in committee review and not yet adopted by the full legislature. No substantive policy changes to the bill's content were made in this version; the differences are purely procedural and formatting-related.

TECHNICAL

Header text changed from 'REVISED' to 'PREAMENDED' to reflect that committee amendments are included but not yet adopted by the full legislature.

Date changed from May 2, 2025 to April 30, 2025, reflecting the pre-amended status of the document.

Removed 'Amended 2nd Reading' label and associated formatting lines indicating the bill had passed second reading.

Final Act (05/13/2025) → PA1 (02/25/2025) · 9 edits

MAJOR

This bill strengthens Colorado's wage and hour enforcement by expanding employer liability to include owners with 25% or more ownership, increasing administrative claim thresholds from $7,500 to $13,000, and adding new penalties for employee misclassification. It also enhances protections against retaliation, requires willfulness determinations in wage cases, and mandates faster payment of wage theft enforcement fund claims. These changes aim to improve worker protections and increase accountability for wage violations.

Scope change

The bill expands the definition of 'employer' to include individuals owning or controlling at least 25% of an employer's ownership interests, while adding an exemption for minority owners who demonstrate full delegation of day-to-day operational control.

DEFINITION

Added requirement that employers include individuals owning or controlling at least 25% of ownership interests, with an exemption for minority owners who demonstrate full delegation of operational control.

ENFORCEMENT

Increased administrative claim threshold from $7,500 to $13,000 for claims filed between July 1, 2026 and December 31, 2027, with future inflation adjustments.

Added new penalties for employee misclassification: $5,000 for willful violations, $10,000 if not remedied within 60 days, $25,000 for second or subsequent willful violations within 5 years, and $50,000 for second or subsequent willful violations not remedied within 60 days.

Expanded retaliation protections to include additional protected behaviors and added immigration status protections against intimidation and coercion.

REQUIREMENT

Added requirement for the division to determine whether wage violations are willful and publish employer names and violation status on the division's website.

Added requirement to notify government bodies with licensing authority when violations are not remedied within 60 days.

Removed provision allowing courts to award employers reasonable costs and attorney fees in certain wage dispute cases.

Removed 90-day deadline for the division to issue determinations on wage complaints.

TIMELINE

Reduced payment timeframe for wage theft enforcement fund claims from 6 months to 120 days.

Reengrossed (04/02/2025) → Signed Act (05/22/2025) · 7 edits · May 22, 2025

MODERATE

This bill significantly strengthens Colorado's wage and hour enforcement by expanding the definition of 'employer' to include individuals with 25% ownership, creating a new waiver mechanism for late wage payments, and substantially increasing the dollar threshold for administrative wage claims from $7,500 to $13,000 by 2026. The changes also add new protections against retaliation, expand equitable relief options for employees, and modify how penalties are assessed for unpaid wages.

Scope change

The bill expands the scope of who can be held liable for wage violations to include minority owners who control at least 25% of an employer, while exempting those who demonstrate full delegation of operational authority.

DEFINITION

Expanded the definition of 'employer' to include individuals who own or control at least 25% of ownership interests, with an exception for minority owners who demonstrate full delegation of day-to-day operational authority.

ENFORCEMENT

Added new provision allowing the Director to waive penalties for late wage payments if all wages are paid within 14 days of an administrative claim, but prohibits waiver for second or subsequent violations within five years.

Added new equitable relief options allowing courts to pursue remedies to deter future violations and prevent unjust enrichment without requiring exhaustion of administrative remedies.

FISCAL

Increased the administrative claim threshold from $7,500 to $13,000 for claims filed July 1, 2026 through December 31, 2027, with automatic inflation adjustments starting January 1, 2028.

REQUIREMENT

Added requirement for the Director to publish violations on the Division's website and report willful violations to government bodies with licensing authority if not remedied within 60 days.

Expanded retaliation protections to include efforts using immigration status to negatively impact wage and hour rights, and added consideration of timing between protected activity and adverse action.

TIMELINE

Modified the timeline for the Division to investigate wage complaints, changing from 90 days to a new standard with specific claim filing thresholds.

Floor votes · Senate May 6, 2025 · House Apr 2, 2025

How they voted

34–0

Passed

Total votes 34

May 6, 2025

D Democratic22

22 Yea

100% Yea

R Republican12

12 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 22, 2025

Signed into law

Governor Signed

executive

May 7, 2025

Introduced

House Considered Senate Amendments - Result was to Concur - Repass

lower

May 6, 2025

Introduced

House Considered Senate Amendments - Result was to Laid Over Daily

lower

May 6, 2025

Upper · Passed

Senate Third Reading Passed with Amendments - Floor

upper

Apr 30, 2025

Upper · Passed

Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole

upper

Apr 17, 2025

Committee

Senate Committee on Business, Labor, & Technology Refer Unamended to Appropriations

upper

Apr 7, 2025

Introduced

Introduced In Senate - Assigned to Business, Labor, & Technology

upper

Apr 2, 2025

Lower · Passed

House Third Reading Passed - No Amendments

lower

Mar 25, 2025

Lower · Passed

House Committee on Appropriations Refer Amended to House Committee of the Whole

lower

Feb 24, 2025

Committee

House Committee on Finance Refer Amended to Appropriations

lower

Jan 30, 2025

Committee

House Committee on Business Affairs & Labor Refer Unamended to Finance

lower

Jan 8, 2025

Introduced

Introduced In House - Assigned to Business Affairs & Labor

lower

4 primary · 51 co-sponsors