Senate Approves Bill to Crack Down on Wage Theft

HB25-1001 would boost economic security among Colorado workers by ensuring they are paid for their work

DENVER, CO – Legislation sponsored by Senators Chris Kolker, D-Centennial, and Jessie Danielson, D-Wheat Ridge, to combat wage theft in all industries passed the Senate today. 

“Colorado workers lose hundreds of millions of dollars per year in wages due to theft from bad-acting employers,” Kolker said. “Many of these workers are heads of their households already struggling to make ends meet. With this legislation, Colorado’s labor force would more quickly and easily access their owed wages so they are fairly compensated for the work they do.”

“I am committed to making sure every hardworking Coloradan receives the money they earned,” Danielson said. “This bill fights wage theft and protects whistleblowers so all workers can speak up without fear of retaliation.”

HB25-1001 would expand access to justice and improve enforcement on bad-acting employers by 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 paying below 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 would expedite the process of receiving owed wages by allowing the Colorado Department of Labor and Employment (CDLE) to pay victims more quickly, thereby improving the investigative process and proactively identifying violators. It would also enable CDLE 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 in the event the worker fears retaliation. 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. 

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. A 2022 law, also sponsored by Danielson, ensured that Colorado workers are able to recover legally earned wages. 

HB25-1001 now moves back to the House for consideration of amendments. Track its progress HERE.