Employers in Colorado could face steep penalties for wage and hour violations under a new law that takes effect yesterday. They also risk losing their license to operate if willful violations are not remedied. To avoid running afoul of the new law’s aggressive enforcement provisions, employers need to be strategic and timely when assessing wage demands. Here are the top six things you should know about HB25-1001 – which amends the Colorado Wage Act – and key compliance steps you should consider taking now.
1. Publicized Violations
The new law requires the Division of Labor Standards and Statistics to determine if violations of the Colorado Wage Act are willful. For each violation, the Director must publish the employer’s name on the Division’s website, which will likely encourage early resolution even when underlying claims are not made in good faith. The Director is also required to report any employer found to have engaged in a willful violation of the act to the relevant authorities with the power to deny, withdraw, or otherwise limit or impose remedial conditions on an employer’s license, permit, registration or other credential necessary for the lawful operation of the employer’s business.
2. Steep Misclassification Penalties
The law imposes steep penalties on employers found to have misclassified employees as independent contractors in a way that may affect wage and hour payments or reporting obligations. The penalties are as follows, in addition to any other...
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