Colorado Agricultural Employers Now Must Pay Minimum Wages & Comply with the Colorado Labor Peace Act Starting January 22, 2022
Starting January 1, 2022, Colorado agricultural employers[1] must pay their workers minimum and overtime wages under the Colorado Wage Act,[2] and comply with the Colorado Labor Peace Act (“LPA”).[3] For years, agricultural employers were not required to pay Colorado minimum wages because they were exempted but SB21-087 adds a new statute requiring compliance with minimum wage statutes for all agricultural workers and setting the initial minimum wage for workers engaged in “range production of livestock.” CRS §8-6-101.5 et seq. The LPA also provides that the interests of the public, employer and employee should be balanced so that employees have adequate income and an uninterrupted production of goods and services continues. CRS §8-3-102). Since its inception, Colorado excluded agricultural employers from complying with LPA. Agricultural employers no longer have those protections and will need to pay the $12.31 per hour minimum wage to their workers. In complying with these laws, Agricultural employers are forbidden from retaliating against an agricultural employee who exercises his/her rights under the LPA and other sections of Colorado labor statutes. The new law includes a rebuttable presumption that if an employer takes an adverse employment action (defined as a demotion, reassignment, lower compensation, denial of promotion, termination or “other decision . . . that adversely affects the agricultural employee) against an employee within 90 days of that employee asserting the rights granted by the new law, the employer has retaliated against the employee for exercising his/her statutory rights. Agricultural employers – like other companies -- should ensure that they are properly documenting employee demotions and/or terminations or when reducing an employee’s wages, in the event the employee claims these actions were taken in retaliation for raising his/her rights under the new law. If an agricultural employee, key service provider, or whistleblower successfully sues an employer, the new statute provides for an award of damages plus attorney fees. CRS §8-13.5-204
The new law creates significant new costs for farmers and ranchers and in certain circumstances, establishes a legal presumption that farmers and ranchers must overcome when either an employee or the Colorado Department of Labor & Employment brings a legal action against them.
Take Away
Agricultural employers need to become thoroughly acquainted with the new law. They should consult employment counsel to determine the scope and application of the new law to their ranch or farm operations. Campbell Litigation P.C. focuses on advising and defending employers in employment cases whether in court or before an administrative agency.
[1] An Agricultural Employer is defined as one who engages the services of one or more employees or contracts with a person who recruits, solicits, hires, employs, furnishes, or transports employees; and is engaged in any activity covered by the FLSA or engaged in agricultural labor as defined by §3121(g) of the Internal Revenue Code of 1986 CRS §8-3-104(1).
[2] CRS 8-6-101.5
[3] On June 24, 2021, Gov. Polis signed SB21-087 into law, which in addition to provisions outlined above provides for application of the right to organize under the LPA; right to reasonable access to health, education, and legal, clergy and government services providers; prohibits the use of “Short handed hoe.”