Wage Theft Prevention Legislation Advances

DENVER, CO - The House today advanced legislation on a preliminary vote that would combat wage theft in all industries, boosting the economic security of Colorado workers by ensuring they are paid for their work.

“Wage theft is the largest source of theft in our state, and we are standing firm so Coloradans can receive the money they have worked hard to earn,” said Majority Leader Monica Duran, D-Wheat Ridge. “Research shows that $730 million in wages are stolen from almost 440,000 hardworking Coloradans every year, with women and communities of color disproportionately becoming victims of wage theft. With this bill, we’re allowing workers to more quickly access their owed wages and strengthening protections for whistleblowers so workers can speak up without fear of retaliation.”

“When employers refuse to pay their employee for the work they’ve already completed, it is the same thing as stealing money out of their wallet, and hardworking Coloradans can’t afford to forgo the paycheck that they worked for,” said Rep. Meg Froelich, D-Englewood. “Wage theft hurts Colorado workers and families who are struggling to make ends meet. Our bill aims to provide better support for workers to ensure they can be fairly paid for the work they do.”

HB25-1001 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 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 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.