The Rocky Mountain Employer

“Colorado’s efforts to regulate artificial intelligence (“AI”) in employment decisions have reached a critical turning point. The most recent reform proposals under Senate Bill 25B-004 (“SB-004”) include liability provisions that would significantly expand  exposure to AI developers under both the Colorado Anti-Discrimination Act (“CADA”), Colo. Rev. Stat. § 24-34-401 et seq., and Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq. (“Title VII”), despite the AI developer not being an employer. “ 

“On August 19, 2025, a jury returned a verdict awarding Donquenick Joppy (“Joppy”) $20,000,000.00 against HCA-Healthone LLC d/b/a the Medical Center of Aurora (“TMCA”) when the jury found TMCA liable for racial discrimination and retaliation in violation of 42 U.S.C. § 1981 (“Section 1981”), making it one of the largest awards in a racial discrimination case in recent years.”

“On July 29, 2025, the Attorney General of the United States (“Attorney General”) issued a memorandum titled “Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination (the “Memo”).” The Memo is intended to clarify the application of federal anti-discrimination laws to Diversity, Equity, and Inclusion (“DEI”) programs or initiatives that may involve discriminatory practices. The Memo highlights DEI efforts that could trigger legal scrutiny, even for private entities not directly benefitting from federal funds.”

“On July 29, 2025, the Colorado Attorney General, Philip Weiser (“Attorney General”), filed a Complaint against PetSmart, alleging that PetSmart violated the Colorado Consumer Protection Act (“CCPA”) and the Colorado Restrictive Employment Agreements Act (“CREAA”) by misrepresenting to its employees that its dog grooming training program was free.  The Attorney General alleges that PetSmart’s training program was actually not free because PetSmart required its employees in the program to pay back the value of the program if they were terminated or quit prior to the two-year anniversary of their beginning the program, which resulted in an illegal restriction on their employment.  The Attorney General, via the lawsuit, seeks injunctive relief, civil penalties ranging from $20,000.00 - $50,000.00 per violation of the CCPA and $5,000.00 per worker per violation of the CREAA, attorneys’ fees, and costs against PetSmart as a result of its alleged wrongdoing.”

“On July 24, 2025, The Department of Labor’s (“DOL”) Wage and Hour Division (“WHD”) reinstated the Payroll Audit Independent Determination Program (“PAID” or the “Program”). PAID is designed to help the employers using it to resolve potential minimum wage and overtime violations under the Fair Labor Standards Act (“FLSA”) and violations under the Family and Medical Leave Act (“FMLA”) before any lawsuits based on said violations are instituted. PAID gives employers the ability to conduct self-audits of their pay practices and work with the DOL’s WHD to cure any wage-related pay mistakes or omissions and ensure that employees receive their back wages, or other remedies, prior to litigation ensuing.  If an employer wishes to dispute the alleged wages owed to an employee, it cannot utilize the PAID Program.”

“The Rocky Mountain Employer has tracked Senate Bill 25-083 (“SB25-083”) since the Colorado Senate introduced it during the Colorado General Assembly’s 2025 Regular Session.  As discussed in the Rocky Mountain Employer’s April 24, 2025, post, SB25-083 effectively bans nearly all non-compete agreements for medical professionals. SB25-083 was passed by the full General Assembly as of April 21, 2025, and on June 3, 2025, Governor Polis signed the bill into law. Consequently, the use of most restrictive covenants in employment agreements with physicians, physician assistants, certified midwives, dentists, and advanced practice registered nurses entered into after August 6, 2025, will be prohibited.”

“Workplace sexual harassment and abuse are not uncommon phenomena, but the United States Congress and President Trump recently passed a bill called the “Take it Down Act” which criminalizes, on a federal level, the nonconsensual publication of intimate or sexually graphic images of another person—whether legitimate or artificially generated (i.e. via artificial intelligence)—and creates avenues of redress for those persons affected by such conduct.  It also sets forth compliance requirements for any web-based platform to address complaints of AI-generated “deepfakes,” and declares a platform’s failure to comply to be an unfair or deceptive trade practice.“

“On July 7, 2025, the Wage and Hour Division of the Department of Labor (DOL) announced its withdrawal of its proposed rule published on December 4, 2024, which purposed to phase out the issuance of subminimum wage certificates to workers with disabilities under section 14(c) of the Fair Labor Standards Act (FLSA). With this withdrawal, the DOL formally discontinues the proposed rule and removes it from further consideration.”

“On June 27, 2025, the Department of Labor (“DOL”) issued Field Assistance Bulletin 2025-3 (“FAB 2025-3”) effectively rescinding the DOL’s prior practice of assessing (or threatening to assess) liquidated damages at the administrative investigation phase of wage and hour complaints under the Fair Labor Standards Act (“FLSA”).   In other words, per FAB 2025-3, the DOL will only seek awards of liquidated damages for wage and hour violations once they are actually litigated, and either an award or a settlement is reached.”

“On June 20, 2025, the Supreme Court of the United States (the “Court”) decided Stanley v. City of Sanford, affirming the dismissal of a complaint alleging a retiree’s claim of disparate treatment on the basis of her disability in violation of the Americans with Disabilities Act (“ADA”). The Court held that the retiree’s claim must be dismissed because she was not a “qualified individual” under Title I of the ADA (“Title I”), as she did not plead that she could perform the essential functions of the employment position that she held or desired. In so doing, the Court substantially limited retirees’ ability to enforce the protections articulated in Title I.”

“Campbell Litigation - Best wishes on this Juneteenth holiday”

“On June 5, 2025, the United States Supreme Court (the “Court”) vacated and remanded the Court of Appeals for the Sixth Circuit’s (the “Court of Appeals”) decision in Ames v. Ohio Department of Youth Services (“Ames”), in which the Court of Appeals applied the heightened “background circumstances test” for reverse discrimination claims under Title VII of the Civil Rights Act of 1964 (“Title VII”) to grant summary judgment in favor of the employer.  In so doing, the Court effectively abolished a significant evidentiary roadblock faced by members of “majority” groups who claim discrimination based on their protected class(es), which will dramatically affect discrimination jurisprudence in multiple federal circuits—including the Tenth Circuit.”

“The U.S. Department of Labor (“DOL”) recently released its Proposed Budget for the 2026 fiscal year,[1] following President Trump’s issuance of Executive Order 14173 in January of this year.  In light of the Proposed Budget, many fear that the DOL is now aligning with the current administration’s broader efforts to shut down the Office of Federal Contract Compliance Programs (OFCCP), thereby completely removing any authority the OFCCP has to audit and investigate federal contractors for potential discrimination based on race, sex, and other protected classes.“

“The Rocky Mountain Employer has been tracking how the Trump Administration has taken aim at “diversity, equity, and inclusion” (“DEI”) policies and initiatives since President Trump issued several Executive Orders targeting the same in the first few days of his term. Outside of the obligations communicated in such Executive Orders, it was not exactly clear how the Trump Administration intended to achieve its anti-DEI objectives.  However, on May 19, 2025, United States Deputy Attorney General Todd Blanche indicated in a memorandum that the Department of Justice (“DOJ”) would utilize the False Claims Act (“FCA”) as a part of its “Civil Rights Fraud Initiative” (“Initiative”) to combat illegal DEI initiatives utilized by federal contractors and recipients of federal funds.”

“Last December, the Rocky Mountain Employer discussed the Colorado labor movement’s push to eliminate the Colorado Labor Peace Act’s (“LPA” or the “Act”) current requirement for a second election to determine whether a union can negotiate for union security agreements.[1]  As a result of those efforts, the Colorado Senate introduced and eventually passed Senate Bill 25-005 (“SB25-005”) through the General Assembly after contentious negotiations between labor and employer advocacy groups.[2]  But, on May 16, 2025, Governor Polis vetoed the bill,[3] setting back (for now) the labor movement’s push to eliminate Colorado’s unique status as a “modified” right-to-work state.”

“The Rocky Mountain Employer has been tracking the status of House Bill 25-1001 (“HB-25-1001”) since it was first introduced in the Colorado General Assembly. As of May 6, 2025, HB25-1001 has passed through the General Assembly (with notable changes from its original version, discussed below) and, if signed into law by Governor Polis, will create even more exposure for employers for wage and hour violations under Colorado law by expanding the definition of “employer;” by expanding employer accountability; by requiring a court to find that an employee pursued a wage claim that lacked substantial justification before awarding an employer reasonable costs and attorneys’ fees; and by expanding avenues of recovery against employer retaliation and discrimination, among myriad other things.”

“The Rocky Mountain Employer has been tracking Senate Bill 25-144 (“SB25-144”) since it was first introduced in the Colorado General Assembly during the current legislative session. As previously discussed, SB25-144, if signed into law, will affect both employee and employer rights and responsibilities under Colorado’s Paid Family and Medical Leave Insurance Act and program (“FAMLI”).  On May 2, 2025, the Colorado General Assembly passed SB25-144 and sent the bill to Governor Polis for his signature.  Assuming Governor Polis does not veto the bill, qualifying employees will be entitled to additional leave benefits if their child is receiving inpatient care in a neonatal intensive care unit (“NICU”), starting in 2026.  Further, if signed into law, SB25-144 will set the parameters for the establishment of premium amounts for the FAMLI program for the next several years. “

“The first few months of President Trump’s second presidential term have been characterized by an unprecedented number of Executive Orders—many of which have been directed towards curbing or prohibiting both public and private diversity, equity, and inclusion (“DEI”) initiatives in the workplace. On April 23, 2025, the President issued Executive Order 14281—entitled “Restoring Equality of Opportunity and Meritocracy”—which goes even further and seeks to curtail or eliminate the use or application of disparate impact liability among federal agencies charged with investigating or preventing prohibited discrimination, including the Equal Employment Opportunity Commission (“EEOC”). “

“As part of the Colorado General Assembly’s 2025 Regular Session, the Colorado Senate introduced a bill—Senate Bill 25-083 (“SB25-083”)—that would effectively ban nearly all non-compete agreements for medical professionals. SB25-083 was passed by the full General Assembly as of April 21, 2025, and if Governor Polis signs the bill into law, the use of most restrictive covenants in employment agreements with physicians, physician assistants, certified midwives, dentists, and advanced practice registered nurses entered into after the bill’s August 6, 2025, effective date will be prohibited.”

“The Rocky Mountain Employer has closely followed President Trump’s ousting of National Labor Relations Board (“NLRB” or the “Board”) member Gwynne Wilcox and the ensuing developments in her lawsuit against the President.  Last week, the Rocky Mountain Employer reported that Member Wilcox successfully petitioned the full panel of D.C. Circuit judges (the “Panel”) to reverse, en banc, the U.S. Court of Appeals for the District of Columbia Circuit’s (the “Court of Appeals”) stay of U.S. District Court Judge Beryl Howell’s order reinstating Member Wilcox to her Board seat. However, Member Wilcox’s victory was once again short-lived, as Chief Justice Roberts of the Supreme Court of the United States (“SCOTUS”) reversed the Panel’s decision on April 9, 2025, and ruled that Member Wilcox’s termination is to stay in place pending a further order from himself or SCOTUS.”