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DENVER, CO - Governor Jared Polis today signed legislation into law that will combat wage theft in all industries, boosting the economic security of Colorado workers by ensuring they are paid for their work.
“This new law is a huge win for hardworking Coloradans and continues our bold efforts to boost wages and create an economy that works for everyone,” said Majority Leader Monica Duran, D-Wheat Ridge. “Wage theft is the largest source of theft in our state, with women and communities of color disproportionately becoming victims of wage theft. With this new law, we’re allowing workers to more quickly access their owed wages and strengthening protections for whistleblowers so Coloradans can receive the money they have worked hard to earn.”
“Colorado workers lose hundreds of millions of dollars per year in wages due to theft from bad-acting employers," said Sen. Chris Kolker, D-Centennial. “Many of these workers are heads of their households already struggling to make ends meet. With this legislation, Colorado’s labor force would more quickly and easily access their owed wages so they are fairly compensated for the work they do.”
“When employers refuse to pay their employees for the work they’ve already completed, it is the same thing as stealing money out of their wallet,” said Rep. Meg Froelich, D-Englewood. “Wage theft hurts Colorado workers and families who are struggling to make ends meet. Our new law will help provide better support for workers to ensure they can be fairly paid for the work they do.”
“I am committed to making sure every hardworking Coloradan receives the money they earned,” said Sen. Jessie Danielson, D-Wheat Ridge. “This new law fights wage theft and protects whistleblowers so all workers can speak up without fear of retaliation.”
HB25-1001 helps 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. This law increases the cap to $13,000 starting July 1, 2026, 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 law will expedite the process so the Colorado Department of Labor and Employment (CDLE) can pay wage theft victims more quickly. CDLE can now crack down on worker misclassification, a technique used to avoid providing benefits and overtime wages.
To deter employers from stealing wages, CDLE must publish wage theft determinations and update a list of wage theft violators on the division’s website. Under the law, CDLE must report wage theft violations to licensing and permitting bodies if there is a willful violation that is not remedied within sixty days.
HB25-1001 allows third parties to bring complaints on a worker’s behalf and extends anti-retaliation and discrimination measures for all workers who raise complaints, allowing for similarly situated employees to speak up for others.
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. Reps. Duran and Froelich and Sen. Danielson 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.