Colorado Employers Could Face Penalties Up to Twice the Amount of a Wage Claim but Can Provide Comments to the Colorado Department of Labor Standards and Statistics during Rule-Making
Jordan Brickman, Esq.
On January 1, 2023, Colorado employers could face penalties of up to twice the amount of wages owed in wage claims brought by employees, which is significantly different than the current penalty scheme for wage claim violations.
Significantly, Senate Bill 22-161,[1] imposes various increased penalties on an employer for violations of the Colorado Wage Act, for an employer’s failure to pay all past due wages within 14 days of a demand, resulting in an automatic penalty of: (1) two times the amount of unpaid wages; or (2) $1,000.00, whichever is greater, in addition to the full value of unpaid wages.[2] This modification eliminates the prior penalty scheme, which called for a penalty of 125% the value of unpaid compensation up to $7,500.00, and only 50% the value of unpaid compensation of amounts greater than $7,500.00.[3]
On August 30, 2022, the Colorado Division of Labor Standards and Statistics (the “Division”) at the Colorado Department of Labor and Employment (“CDLE”) will host an informal pre-rulemaking meeting addressing implementation of Senate Bill 22-161, the wage penalty law, and House Bill 22-097,[4] which would expand existing whistleblower protections to all health and safety concerns regardless of a declared public health emergency.
The Division has not drafted any proposed rules ahead of this meeting. Instead, the purpose of the pre-rulemaking meeting is to collect comments from stakeholders to discuss the implementation of rules in response to the modifications to Colorado labor laws. Interested employers should contact the Division to contribute to the process. Campbell Litigation, P.C. will participate in the August 30, 2022 meeting.
[1] Wage Theft Employee Misclassification Enforcement | Colorado General Assembly
[2] C.R.S. 8-4-109(3)(b) (eff. Jan. 1, 2023).
[3] C.R.S. 8-4-109(3)(b).
[4] Whistleblower Protection Health & Safety | Colorado General Assembly