Denver City Council Adopts Bill Enhancing Enforcement Against Local Wage Underpayment

AJ Peters, Of Counsel

On Monday, January 9, 2023, the Denver City Council unanimously passed Resolution 22-1614, which strengthens the ability of workers in Denver seeking redress for unpaid wages.  The law creates a new Article I to Chapter 58 (“Wages and Worker Protections”) of the Denver Revised Municipal Code. The law provides new features to prevent wage theft.  For example, it diminishes the distinction between employees and independent contractors, while providing a three-year statute of limitations on workers’ claims for unpaid wages. 

Denver workers now have two additional avenues to seek redress.  First, they retain the ability to petition Denver Labor, a division of the Auditor’s Office for the City and County of Denver, to investigate their claims. The Auditor’s Office is now authorized to impose flexible penalties — including an assessment up to three times the unpaid wages, along with reinstatement and a $25,000 fine — with enhanced provisions for joint and several liability of upstream businesses for payment of the penalties.  Second, the new law provides a private right of action for workers to seek similar enhanced damages.

In the event of an employer’s honest mistake, with wages repaid within 14 days of the claim, the Denver Auditor’s Office has discretion to waive any fines or penalties.

Take note that these changes to the Denver Revised Municipal Code are separate from changes to wage violation penalties that have been enhanced by the Colorado legislature, as mentioned in our October 27, 2022 blog post.[1]  Considering that Denver employees may find enhanced benefits under the new ordinance, however, it is likely that many will proceed in filing claims through Denver Labor.

Please feel free to reach out to Campbell Litigation with any questions or concerns you may have about how this new law may impact your operations in the City and County of Denver.

[1] https://campbell-litigation.squarespace.com/config/pages/55c389c6e4b0c2b2e462c28c