Colorado will have sharper penalties for wage theft under a law signed by Gov. Jared Polis on Thursday, including a new requirement that the state publish the names of employers who don’t pay workers.
House Bill 1001 also increases the amount of money employees can recoup from successful wage theft claims to $13,000 from $7,500 and cuts the wait time for victims to receive their pay to 120 days from six months. The new law specifies that using a worker’s immigration status to discriminate or retaliate against them for engaging in protected activity is illegal
Wage theft can include paying workers below minimum wage, not paying them money they earned, misclassifying employees as independent contractors or management to avoid paying them overtime, and taking tips earned by the employees.
“When employers refuse to pay their employees for the work they’ve already completed, it is the same thing as stealing money out of their wallet,” Rep. Meg Froelich, an Englewood Democrat and sponsor of the bill, said in a statement. “Wage theft hurts Colorado workers and families who are struggling to make ends meet. Our new law will help provide better support for workers to ensure they can be fairly paid for the work they do.”
The new law follows a vetoed bill last year that was aimed specifically at wage theft in the construction industry. Polis said in his veto letter that the 2024 bill would unfairly punish those who didn’t directly engage in wage theft. The sponsors of the 2025 law said they worked with Polis’ team from the outset to address his concerns. Both bills had the same primary sponsors.
“This new law will help ensure that every Coloradan is paid fairly,” Polis said in a statement. “I am proud to sign this bill into law today to strengthen our protections for workers and want to thank the sponsors for their work on this new law.”
Wage theft is one of the largest and most prevalent forms of theft in the country. A 2022 report by the Colorado Fiscal Institute found that an estimated $728 million in wages are stolen from Colorado workers annually. Wage theft hurts women and communities of color in particular, House Majority Leader and bill sponsor Monica Duran said.
“This new law is a huge win for hardworking Coloradans and continues our bold efforts to boost wages and create an economy that works for everyone,” Duran, a Wheat Ridge Democrat, said.
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