DENVER, Colo. — Colorado’s latest wage-theft law is now in effect, bringing stricter penalties, broader enforcement powers, and expanded protections for workers across all industries.
House Bill 1001, passed in the 2025 legislative session, targets misclassification of employees, unpaid wages and benefits, and retaliation against workers who report violations. The law expands beyond the construction sector to cover all employers, with fines starting at $5,000 per willful misclassification and rising to $50,000 for repeated offenses left unresolved after 60 days.
Key provisions include:
-
Expanded enforcement to cover both employees and independent contractors.
-
Anti-retaliation protections for workers who file wage-theft complaints, with penalties for adverse actions taken within 90 days — and in some cases beyond.
-
Increased claim limits for administrative investigation, from $7,500 to $13,000, starting July 2026.
-
Authority for the Colorado Department of Labor and Employment to award damages and attorneys’ fees.
-
Accountability for minority business owners with at least a 25% stake.
Supporters say the law will speed up payouts to workers and strengthen whistleblower protections. Critics, including business groups, argue the penalties are excessive and that the anti-retaliation provisions may hinder legitimate disciplinary actions.
Employers are urged to review contractor classifications, resolve complaints quickly, and ensure strong anti-retaliation policies to avoid steep fines and public listing as a violator.
A 2022 Colorado Fiscal Institute study estimated $728 million in annual wage theft statewide, with construction, food service, and retail among the hardest-hit sectors.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
Katie is a senior who has been on staff for three years. Her favorite type of stories to write is reviews and features. Katie’s favorite ice cream flavor is strawberry.
Leave a Reply