ColoradoHB25-10012025 Regular SessionHouseWALLET

Enforcement Wage Hour Laws

Sponsored By: Chris Kolker (Democratic), Jessie Danielson (Democratic), Meg Froelich (Democratic), Monica Duran (Democratic)

Signed by Governor

Labor & Employment

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 5 benefits, 1 costs, 1 mixed.

Employers face fines for misclassifying workers

Employers face fines per employee for treating workers as nonemployees when that may affect wage or hour payments or reporting. The fines come on top of other relief: $5,000 for a willful violation or $10,000 if unfixed 60 days after the division’s finding. A second or later willful violation within five years brings a $25,000 fine, rising to $50,000 if unfixed within 60 days. The director must adjust fines by January 1, 2028, and every two years afterward for any inflation increase over the prior two years. Adjustments use the Denver-Aurora-Lakewood Consumer Price Index.

Shorter wait for workers’ wage-fund payments

Colorado shortens the wait for Wage Theft Enforcement Fund payments from six months to 120 days. The labor division may pay unpaid wages, compensation, or other monetary relief when an employer still has not paid. The 120 days run from the applicable determination, hearing officer decision, or end of a payment stay or postponement, whichever is later. Payments depend on available fund money and the division’s payment priorities.

Stronger pay protections for Colorado workers

Colorado employers cannot make payroll deductions that lower an employee’s pay below the applicable minimum wage. Wage laws also cover each person who owns or controls at least 25% of an employer. A minority owner is excluded if they show they fully delegated authority over day-to-day operations.

Workers can bring larger agency claims

Colorado’s labor division can handle wage claims up to $7,500 filed through June 30, 2026. The limit is $13,000 for claims filed July 1, 2026, through December 31, 2027. Beginning January 1, 2028, the director must set the limit annually by rule. Each year’s limit must rise by at least $1,000 over the prior year, or more to match inflation. Inflation is measured using the Denver-Aurora-Lakewood Consumer Price Index for all urban consumers.

Workers gain stronger wage lawsuit rights

People claiming harm from Colorado wage-law violations can sue without first completing the state agency process. They can seek available court orders to prevent future violations or stop employers from keeping unfair gains. The law also limits when workers face an employer’s legal bills. An employer can receive reasonable costs and attorney fees only if it offered payment within 14 days after a written demand was sent or a lawsuit was served. The court must also find that employees receiving the offer pursued a case without substantial justification.

Stronger local enforcement of workers’ wages

Colorado cities and counties can pass and enforce wage-payment laws for work in their area without reducing state protections or benefits. The law also recognizes county-authorized people who prosecute crimes or enforce wage laws. The state labor division must publish public-record wage violations, including citations, determinations or written opinions, employer names, and whether violations were willful. It must report willful violations still unfixed 60 days after its finding to government bodies overseeing employer licenses or credentials. It may also refer other wage-law violations to those bodies.

Prompt wage payments can erase penalties

Colorado’s labor director can waive a penalty for failing to pay claimed wages within 14 days after a written demand. The employer must pay all claimed amounts within 14 days after the related agency claim is sent or served. No waiver is allowed for a second or later failure to pay that employee within five years. This can encourage faster wage payment, but workers may lose the added penalty.

Sponsors & Cosponsors

Sponsors

  • Chris Kolker

    Democratic • Senate

  • Jessie Danielson

    Democratic • Senate

  • Meg Froelich

    Democratic • House

  • Monica Duran

    Democratic • House

Cosponsors

  • Amy Paschal

    Democratic • House

  • Cecelia Espenoza

    Democratic • House

  • Gretchen Rydin

    Democratic • House

  • Jamie Jackson

    Democratic • House

  • Junie Joseph

    Democratic • House

  • Julie McCluskie

    Democratic • House

  • Jacque Phillips

    Democratic • House

  • Kyle Brown

    Democratic • House

  • Karen McCormick

    Democratic • House

  • Lesley Smith

    Democratic • House

  • Mandy Lindsay

    Democratic • House

  • Meghan Lukens

    Democratic • House

  • Rep. S. Bird

    Affiliation unavailable

  • Steven Woodrow

    Democratic • House

  • Tammy Story

    Democratic • House

  • William Lindstedt

    Democratic • Senate

  • Iman Jodeh

    Democratic • Senate

  • Judy Amabile

    Democratic • Senate

  • James Coleman

    Democratic • Senate

  • Katie Wallace

    Democratic • Senate

  • Lindsey Daugherty

    Democratic • Senate

  • Matt Ball

    Democratic • Senate

  • Marc Snyder

    Democratic • Senate

  • Robert Rodriguez

    Democratic • Senate

  • Tony Exum

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 226 • No: 101

House vote • 5/7/2025

Senate amendments: Concur

Yes: 41 • No: 22

House vote • 5/7/2025

Senate amendments: Repass

Yes: 41 • No: 22

Senate vote • 5/6/2025

Third reading: Amend (l.041)

Yes: 35 • No: 0

Senate vote • 5/6/2025

Third reading: Bill

Yes: 23 • No: 12

Senate vote • 4/30/2025

Adopt amendment J.003

Yes: 4 • No: 3

Senate vote • 4/30/2025

Refer House Bill 25-1001, as amended, to the Committee of the Whole.

Yes: 4 • No: 3

Senate vote • 4/17/2025

Refer House Bill 25-1001 to the Committee on Appropriations.

Yes: 4 • No: 3

House vote • 4/2/2025

Third reading: Bill

Yes: 42 • No: 22

House vote • 3/25/2025

Refer House Bill 25-1001, as amended, to the Committee of the Whole.

Yes: 6 • No: 3

House vote • 2/24/2025

Refer House Bill 25-1001, as amended, to the Committee on Appropriations.

Yes: 8 • No: 5

House vote • 2/24/2025

Adopt amendment L.005 (Attachment B).

Yes: 10 • No: 1

House vote • 1/30/2025

Refer House Bill 25-1001 to the Committee on Finance.

Yes: 8 • No: 5

Actions Timeline

  1. Governor Signed

    5/22/2025House
  2. Signed by the Speaker of the House

    5/13/2025House
  3. Signed by the President of the Senate

    5/13/2025Senate
  4. Sent to the Governor

    5/13/2025House
  5. House Considered Senate Amendments - Result was to Concur - Repass

    5/7/2025House
  6. Senate Third Reading Passed with Amendments - Floor

    5/6/2025Senate
  7. House Considered Senate Amendments - Result was to Laid Over Daily

    5/6/2025House
  8. Senate Third Reading Laid Over Daily - No Amendments

    5/5/2025Senate
  9. Senate Second Reading Special Order - Passed with Amendments - Committee, Floor

    5/2/2025Senate
  10. Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole

    4/30/2025Senate
  11. Senate Committee on Business, Labor, & Technology Refer Unamended to Appropriations

    4/17/2025Senate
  12. Introduced In Senate - Assigned to Business, Labor, & Technology

    4/7/2025Senate
  13. House Third Reading Passed - No Amendments

    4/2/2025House
  14. House Second Reading Special Order - Passed with Amendments - Committee, Floor

    4/1/2025House
  15. House Second Reading Laid Over Daily - No Amendments

    3/27/2025House
  16. House Committee on Appropriations Refer Amended to House Committee of the Whole

    3/25/2025House
  17. House Committee on Finance Refer Amended to Appropriations

    2/24/2025House
  18. House Committee on Business Affairs & Labor Refer Unamended to Finance

    1/30/2025House
  19. Introduced In House - Assigned to Business Affairs & Labor

    1/8/2025House

Bill Text

  • Engrossed

  • Final Act

  • House Appropriations Preamend

  • House Finance Preamend

  • Introduced

  • Reengrossed

  • Rerevised

  • Revised

  • Senate Appropriations Preamend

  • Signed Act

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