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The Colorado Legislative session is over, and several new statutes were passed that affect employment laws. Employers should be aware of these changes and adapt their policies and procedures as needed.

The first employment bill signed by Governor Polis was HB22-1112, which, among other things, changes the reporting period for a workers’ compensation injury from four days to 10. It takes effect on August 10, 2022, and we wrote more extensively on this bill a couple of weeks ago.

SB22-161 passed both chambers of the Legislature and is awaiting Governor Polis’s expected signature. The bill updates and modifies laws pertaining to the payment of wages, employee misclassification, and workplace safety and the enforcement procedures and remedies for violations of those laws. It requires a notice to terminated employees before deductions for owed monies or equipment. The biggest change will be in the amounts of automatic penalties for wage claims. An employer has 14 days to pay a wage claim or is fined two times the amount of the claim or $1,000; if willful, then it is three times or $3,000. It allows for attorney fees, liens, and garnishments for failure to pay after a determination for the employee. Employers going forward will need to be certain of the accuracy of their pay systems and respond to any wage claims in a timely manner. Pending the governor’s signature, these statutes will take effect on August 10, 2022.

HB22-1317 is also awaiting the governor’s signature. It makes nearly all noncompete agreements unlawful in Colorado. The only major exception is for persons making the amount of a “highly compensated worker” under wage laws. Currently, in Colorado, that is $101,250. The covenant not to compete must also be for the protection of trade secrets and is no broader than is reasonably necessary to protect the employer's legitimate interest in protecting trade secrets. Penalties are $5,000 per employee or prospective employee and injunctive relief and actual damages. The bill also clarifies the repayment of training costs in that those provisions are allowed where the training is distinct from normal, on-the-job training. The employer's recovery is limited to the reasonable costs of the training and decreases over the course of the two years subsequent to the training proportionately based on the number of months that have passed since the completion of the training. Also, reasonable confidentiality agreements are allowed. This bill will take effect on August 10, 2022.

Under HB22-1367, which modifies the Colorado Antidiscrimination Act, claims of discrimination to the state Civil Rights Commission will be extended. Processing the claims now extends to 450 days instead of 270. The time to file for an employee goes from six months to 300 days. This bill is awaiting signature and will take effect on August 10, 2022.

HB22-1383 extends the existing “ban the box” law to juvenile offenses. Employers cannot inquire about juvenile offenses, and applicants do not have to disclose those offenses at any age for any reason. No discipline can be allowed for anyone who fails to disclose juvenile offenses. There are exceptions for childcare, law enforcement, and political subdivisions. It also takes effect on August 10, 2022.

SB22-230 is of great impact to Colorado counties. It allows for collective bargaining, arbitration, and grievances for county employees. The definition of “county” under the statute does not include a combined city and county or a county with a population below 7,500. It was sent to Governor Polis for signature on May 18, and at this time, he is expected to sign it. The Colorado Department of Labor will begin rulemaking for the new statutes on July 1, 2022, and the provisions of the new laws will take effect on July 1, 2023.

The primary purpose of SB22-234 was to reimburse the federal government for the loans to Colorado’s unemployment fund. In the process of doing this, lawmakers also did the following:

• Made permanent a temporary increase in the amount of partial benefits (which was to expire September 1, 2022).

• Repealed the waiting week if the balance of the unemployment compensation fund reaches $1 billion.

• Directed the division to conduct a study on the effects/feasibility of creating a dependent allowance, effective July 1, 2023.

• Made accommodations to provide benefits to undocumented workers.

• Reinforced the existing requirement that employers notify termed employees of their UI rights.

• Set forth factors for determining repayment of overpaid compensation.

In addition, the whistleblowing protections instituted under the public health emergency will now be permanent, workers’ compensation carriers will have new provisions to follow, and there are protections for employee mental health records in workers’ compensation cases.

If you have any questions about the recent legislative session or would like more information, please email the Employers Council Member Experience team.