By: Claire Sweetman
Colorado Laws Taking Effect on January 1, 2025
Over a dozen new state laws took effect on Wednesday, January 1, 2025.[1] Some of these laws were passed by state legislators in 2024, while others were derived from ballot initiatives voted on by Colorado voters in November. Below are some of the new laws affecting the workforce:
- Minimum Wage Increases
- Colorado’s minimum wage increased from $14.42 to $14.81 per hour.
- Denver’s minimum wage increased from $18.29 to $18.81 for standards employees, and from $15.27 to $15.79 for tipped employees.
- The federal minimum wage for covered nonexempt employees remained $7.25.[2]
- Delivery Pay Transparency
- A law passed in May 2024 will require delivery companies, such as DoorDash, UberEats, and GrubHub, to disclose to drivers and customers how much of the payment goes to the drivers versus the company.[3]
- Starting on January 1, 2025, the law also mandates that companies reveal to drivers the distance of a delivery before they accept the order.
- In response to years of advocacy by delivery drivers, the law also requires that all tips from customers be paid to the drivers.
- Increased Protections for Minor Workers
- Amendments to the Colorado Youth Employment Opportunity Act of 1971 introduced new compliance measures, penalties, and protections to ensure the safety and rights for young workers.[4]
- The new provisions include stricter penalties and public disclosures for violations of the act, as well as anti-retaliation measures.
- The changes also include a safe harbor provision that protects employers who were intentionally misled by a minor worker regarding their age and utilized a reliable third party to verify the minor’s age.
- Workers’ Compensation Disability Benefits
- House Bill 24-100 addresses disability benefits for workers’ compensation injuries. Some key provisions took effect in August 2024.
- Starting on January 1, 2025, the law imposes an increase on the caps for combined temporary and permanent disability payments.
- For claimants with an impairment rating of 19% or less, the cap will increase to $185,000. For claimants with a rating of over 19%, the cap will increase to $300,000.[5]
Notably, Colorado Governor Jared Polis also vetoed several pieces of legislation this session. Below are some of the bills that were not passed:[6]
- Wage Claims in the Construction Industry
- This bill would have made general contractors liable for claims of unpaid wages made by subcontractors, rather than containing liability to the offending subcontractors.
- Governor Polis vetoed the bill, reasoning that the punishment for wage theft should be targeted at offending subcontractors who fail to pay their workers, not general contractors.
- Prohibition on Employee Discipline
- This bill would have prohibited employers from subjecting an employee to discipline, discharge, or adverse employment action based on the employee’s refusal to attend or participate in employer-sponsored meetings about religious or political matters or listen to religious or political communications from the employer.
- Governor Polis vetoed the bill because he found the bill’s definitions of “religious matters” and “political matters” to be overbroad.[7]
[1] https://www.westword.com/news/10-new-colorado-laws-that-take-effect-on-january-1-what-to-know-22906275
[2] https://www.dol.gov/general/topic/wages/minimumwage
[3] https://www.westword.com/news/10-new-colorado-laws-that-take-effect-on-january-1-what-to-know-22906275
[4] https://www.huschblackwell.com/newsandinsights/colorados-new-employment-laws-what-to-know#:~:text=House%20Bill%2024%2D1095%20is,to%20verify%20the%20minor’s%20age.
[5] Id.
[6] Id.
[7] Id.