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On January 9, 2023, the Denver City Council passed an ordinance that will allow workers who have encountered wage theft to submit a claim directly to the city auditor. The ordinance will work in conjunction with existing wage theft laws and processes, so individuals claiming wage theft can still go through the Colorado Department of Labor and Employment’s (CDLE) complaint process or file their claim in court. The thought is that this will be a quicker and more cost-effective route for workers to recover unpaid wages, as the auditor anticipates being able to resolve claims in a few weeks. The city auditor’s labor division is already able to enforce minimum wage separate from the CDLE.

The ordinance allows:

• Workers up to three years to file their complaint with the city auditor

• The city auditor to force employers to pay withheld wages plus 12% interest

• The auditor to impose other penalties, including job reinstatement, fines up to $25,000, and treble damages of up to three times the amount of the owed wages

• Employees and independent contractors working in Denver to file complaints so that someone working for a subcontractor could name the prime contractor if there is no wage payment

• Employers 14 days to respond to claims filed with the city auditor and the option to pay the worker before the auditor begins their investigation; if they do this, the auditor will not impose any fines 

If the employer has committed wage theft and has violated minimum wage laws, the auditor cannot penalize them for both. They will choose to enforce one or the other. The ordinance will now move to the rule-making process, which will define how a worker submits a claim. There is no date posted for when the ordinance will take effect. 

Other Colorado municipalities may consider passing a similar ordinance, which happened in the past when Denver legislated employer activity. If you have any questions, please contact our Member Experience Team.