DENVER, CO - The House Business Affairs & Labor Committee today passed legislation sponsored by Majority Leader Monica Duran and Representative Meg Froelich that would combat wage theft in all industries, boosting the economic security of Colorado workers by ensuring they are paid for their work.
“I’m proud to bring this wage theft prevention legislation to protect hardworking Coloradans, boost workers, and ensure Coloradans are paid for their work,” said Majority Leader Monica Duran, D-Wheat Ridge. “Wage theft is devastating to families and working people, especially for workers of color and women who are more likely to be victims of wage theft. There’s no excuse for it ever. People deserve to be paid for what they do, no matter what their role is or what industry they work in. This policy will strengthen avenues to justice, protect workers who speak up, and crack down on employers who engage in wage theft.”
“Withholding earned wages is theft, and it hurts the livelihood of hardworking Coloradans who are just trying to put food on the table for themselves and their families,” said Rep. Meg Froelich, D-Englewood. “Whether it’s worker misclassification to avoid overtime pay or employers refusing to issue a paycheck for completed work, wage theft robs workers of the money they worked hard for. Our bill works to prevent wage theft across all fields and support workers as they seek the wages they deserve to continue our commitment to make Colorado a great place to live, work, and do business.”
HB25-1001, which passed by a vote of 8-5, aims to protect workers who make wage theft claims and prevent wage theft occurrences by holding bad-acting employers accountable and increasing the wage theft claim cap. Currently, wage theft claims are capped at $7,500. The bill would increase the cap to $13,000, with that claim amount adjusting for inflation beginning in 2028.
Wage theft can include not paying workers minimum wage, non-payment of wages, misclassifying workers as independent contractors or as management to avoid paying overtime, and taking tips that were meant for the employees.
The bill aims to expedite the process of receiving owed wages by allowing the Colorado Department of Labor and Employment (CDLE) to pay victims more quickly, This will improve the investigative process and proactively identify violators. CDLE would also be able to crack down on worker misclassification, a technique used to avoid providing benefits and overtime wages.
To deter employers from stealing wages, CDLE would be required to publish wage theft determinations and update a list of wage theft violators on the division’s website. Under the bill, CDLE would also report wage theft violations to licensing and permitting bodies and publicize consequences.
HB25-1001 allows third parties to bring complaints on a worker’s behalf. The bill also extends anti-retaliation and discrimination measures for all workers who raise complaints allowing for similarly situated employees to speak up for others.
Reps. Duran and Froelich have championed numerous bills to ensure workers receive the wages they’ve earned, including legislation in 2022 that ensures Colorado workers are able to recover legally-earned wages. A 2022 report by the Colorado Fiscal Institute found that nearly 440,000 low-wage Colorado workers experience $728 million in wage theft annually. Workers of color and women are most likely to be victims of wage theft, and the most common industries for wage theft are retail, construction, and food service.