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Join Employers Council for a webinar at noon Colorado time on August 9, 2022, to learn more about the increased penalties for wage payment disputes enacted by the Colorado Legislature. The new statutes take effect on August 10, 2022.

Senate Bill 22-161, Wage Theft Employee Misclassification Enforcement, updates and modifies laws pertaining to the payment of wages, employee misclassification, and the enforcement procedures and remedies for violations of those laws. According to the bill’s summary, some of the changes include:

• The penalties for failure to provide requested information to the Division of Labor Standards and Statistics (DLSS) in the Department of Labor and Employment or obstructing access to an employer's premises change from a misdemeanor criminal offense to a daily penalty of not less than $50.

• An employer is required to “provide notice to an employee, within 10 days after the employment terminates, before deducting from wages or compensation any amount of money or property the employee failed to return or repay upon termination of employment and pay the employee the deducted amount within 14 days after the employee returns or repays the money or property if the employee did so within 14 days after notice is provided.” Employers Council has sample language for this notice in our Payroll Deduction Authorization whitepaper.

• Large automatic penalties are imposed on an employer that fails to pay all past-due wages within 14 days after a written demand or civil or administrative action for the past-due wages is sent to or served on the employer. If an employee shows that the employer's failure or refusal to pay wages was willful, the employer is subject to even higher penalties. Further, “an employer's second or subsequent failure or refusal to pay wages of the same or similar type within the five years preceding a claim is considered per se willful.”

• “If an employer makes a full legal tender all amounts demanded in good faith within 14 days after a written demand is sent or an administrative claim or civil action is sent or served, the employee is required to dismiss the action.”

• If an employer fails to pay an employee past-due wages within 60 days after the determination in favor of the employee, the changes allow recovery of attorney fees, an additional fine of 50% of the amount of past-due wages, and a penalty of the greater of 50% of past-due wages or $3,000.

• For a citation, notice of assessment, or order issued against an employer on or after January 1, 2023, the changes require the DLSS, upon request of an employee, to enter a citation, notice, or order as a judgment of the court, and the judgment is sufficient to support the issuance of writs of garnishment.

• On or after January 1, 2023, the changes authorize the DLSS “to issue a notice of administrative lien and levy, similar to a child support enforcement lien, when an employer fails to pay past-due wages, fines, or penalties, which lien attaches to the employer's real or personal property that is in the possession, custody, or control of another person.”

• Allows an employee to file a civil action to seek relief, including attorney fees and costs. “The DLSS, after an investigation of a discrimination or retaliation claim, may also order similar relief to an employee, other than attorney fees and costs.”

As is apparent, a misstep in wage payments can become expensive, and the mechanism for enforcement, including garnishments and liens, is much more robust. Join Employers Council for the webinar on August 9 for more information and a discussion. If you have questions, email the Member Experience team.