Colorado Increases Enforcement of Wage & Hour Laws - HR ALERTS
- Regina Dyerly, SHRBP, PHR
- Jun 30
- 2 min read
Colorado Increases Enforcement of Wage & Hour Laws
Effective: August 7, 2025 (pending no referendum)
Governor Polis, on June 5th, 2025, has signed HB25-1001, a new law that gives the Colorado Department of Labor and Employment (CDLE) stronger tools to address wage and hour violations. This includes expanded authority to investigate issues, increased penalties for noncompliance, and a clearer definition of what constitutes wage theft.
This is part of the state’s broader effort to ensure workers are paid fairly and on time — and it’s a good opportunity for employers to double-check their current pay practices.
What’s Changing:
Stronger Enforcement Authority: CDLE can now issue administrative subpoenas and pursue more aggressive enforcement actions.
Higher Penalties: Employers found out of compliance could face steeper financial consequences, including interest and restitution.
Clearer Wage Theft Standards: The law defines wage theft to include things like shorted pay, late checks, and missed payments for hours worked.
Restitution to Employees: If violations occur, employers must pay all owed wages — potentially with penalties added.
New Posting Requirements: CDLE is expected to release updated wage law posters; these will likely be required in workplaces.
Common Wage Traps to Avoid:
Final paychecks issued late
Automatic deductions for breaks not actually taken
Misclassifying employees as exempt from overtime
Missing compensation for training, travel, or setup/cleanup time
Unpaid “off-the-clock” work (before/after shifts)
Why This Matters:
With new tools and penalties, CDLE is expected to ramp up enforcement activity. Wage theft is now more costly , both financially and reputationally.
Get day-to-day updates on Colorado Increases Enforcement of Wage & Hour Laws visit the Vida HR Knowledge Center (Vida HR Clients Exclusive).
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