The Colorado legislature wrapped up its 2025 session this past May, and the impact of passed legislation is still being assessed in contractor offices and jobsites across Colorado. From new workforce rules to construction litigation to changes in public contracting policy, lawmakers had the construction industry at the center of the action. Construction-related bills took swings at multi-family housing supply, wage-and-hour enforcement, public-works labor rules and workers’ compensation. A fifth bill, which passed overwhelmingly in the Democrat-controlled chambers but was vetoed by Gov. Polis, would have positioned Colorado as a union shop state. Going After Alleged Wage Theft: HB 25-1001 Colorado has continued to strengthen its wage-and-hour enforcement framework and placed additional burden on businesses with the passage of HB25-1001, which took effect on Aug. 6, 2025. The measure makes sweeping changes to the Colorado Wage Act and Wage Claim Act for all employers, creating stiffer penalties for misclassification, expanding avenues for worker claims and broadening the enforcement powers of the Colorado Department of Labor and Employment (CDLE). Wage theft is now clearly defined not only as unpaid wages, but also as failure to pay overtime, provide earned benefits or properly classify employees. Despite the focus on our industry over the last couple of years, claims made from the construction industry were only 11% of all wage claims made between 2021 and 2023. Key Provisions of HB 25-1001 • Stronger Penalties: Misclassifying employees as contractors now carries fines from $5,000 to $50,000 per violation, with higher penalties for repeat or uncorrected offenses. CDLE will adjust fine levels every two years beginning in 2028. • Expanded Liability for Business and Owners: Owners controlling 25% or more of a business can be personally liable for wage violations unless they’ve fully delegated daily operations. In addition, independent contractors may now also file claims, and employers may only recover fees when a claim “lacks substantial justification.” • Broader Enforcement and Transparency: Starting July 2026, CDLE may investigate wage claims up to $13,000 (up from $7,500), will publish violators online and report unresolved, willful cases to licensing agencies. This provision was supported by ABC and the business community in response to the draconian bill against construction contractors passed by the legislature and vetoed by the governor last year. • Safe Harbor for Prompt Payment: Employers can avoid automatic penalties by paying full wages within 14 days of a formal CDLE complaint — provided they have a clean five-year record. • Retaliation Presumption: Adverse actions taken within 90 days of a wage complaint are presumed retaliatory. Remedies now include reinstatement, damages, attorney fees and daily penalties. ABC and its members strongly oppose wage theft and largely agree with the goal of reducing wage theft by providing regulators with more tools to quickly administer By NICHOLAS SIAKOTOS, RISK MANAGER, COUNSEL MTech Mechanical and JACK TATE, PRESIDENT & CEO ABC Rocky Mountain Colorado Construction Legislation: 2025 Public Policy Update Construction ADVOCATE 31
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