Wage Theft Prevention Bill Passes Committee

DENVER, CO – The Senate Business, Labor, & Technology Committee today advanced legislation to combat wage theft and boost the economic security of Colorado’s workers.

HB24-1008, sponsored by Senators Jessie Danielson, D-Wheat Ridge, and Chris Kolker, D-Centennial, would improve wage theft accountability by requiring general contractors to cover lost wages if a subcontractor commits wage theft and increases transparency to improve compliance. It would also impose a $2,000 fine on a subcontractor if they do not forward a written demand for payment to the general contractor.

“Wage theft is wrong, and it impacts people all across the state. Coloradans should know we’re working hard to combat this problem,” Danielson said. “With this bill, we will strengthen protections for workers and ensure they are paid their fair share.”

“Colorado’s dedicated workers lose nearly $728 million in stolen wages annually,” said Kolker. “Theft is theft, and it keeps hardworking families from being able to make ends meet. Our legislation targets the increased use of subcontracts and other labor market intermediaries to ensure all workers are paid for the work they do and no one falls through the cracks.”

Wage theft can include not paying workers 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.

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. Construction workers are particularly at risk for wage theft due to the high rates of subcontracting and other labor market intermediaries.

HB24-1008 now heads to the Senate Appropriations Committee for further consideration. Follow its progress HERE.