Colorado has enacted House Bill 25-1001, which significantly amends the state’s wage and hour laws by enhancing enforcement mechanisms, expanding employer liability, and strengthening employee protections. The law will take effect on August 6, 2025.
In addition, the governor recently signed Colorado House Bill 25-1208 to protect the tip credit when localities enact their own minimum wages. As of January 1, 2026, localities will be permitted to set a tip credit higher than the state offset, allowing a larger amount of tips to count toward minimum wage.
Misclassification and Retaliation Penalties
Under the new amendments to the Colorado Wage Act, § 8-4-101, et. seq. (“Wage Act”), if an employer misclassifies a worker as an independent contractor rather than an employee and the misclassification affects wage or hour obligations under state, federal, or local law, the employer may face steep penalties ranging from $5,000 to $50,000 per affected employee, depending on the severity and whether the violation was remedied, including:
Campbell’s, a renowned canned soup brand, recently terminated a high-ranking executive following the emergence of a recording in which he made racially insensitive statements and alleged that the ...