Intro to Colorado Labor Laws

Colorado has amended its anti-discrimination law to expand the state’s CROWN Act. This act prohibits race based discrimination, including traits linked to race such as hair texture and hair type. Effective August 7, 2024, hair length will be considered a trait associated with one’s race.

On June 6, 2023, Governor Jared Polis signed the Protecting Opportunities and Workers’ Rights (POWR) Act, which lowers the threshold for viable harassment claims to any conduct that is “subjectively offensive to the individual alleging harassment and is objectively offensive to a reasonable individual who is a member of the same protected class.” Additionally, the POWR adds ‘marital status’ as a protected category, meaning employers cannot take any adverse action based on an employee’s marital status. Among other new requirements, the law also strictly regulates nondisclosure agreements when they limit disclosure of discrimination or unfair employment practices, and mandates employers to keep personnel and employment records for at least five years.

On June 2, 2023, Governor Polis signed the Job Application Fairness Act (JAFA), prohibiting employers from asking certain age-related questions on initial employment applications or during the hiring process. These questions include inquiries about age, date of birth, and dates of attendance at or graduation from educational institutions. The enactment of JAFA builds upon existing requirements and prohibitions in Colorado's hiring process, such as the "ban-the-box" policy that restricts the inquiry into criminal histories, as well as the mandate to include salary and benefits information in job postings.

Starting July 1, 2025, Colorado will require employers to obtain consent before collecting or using employees’ biometric data, such as fingerprints or facial recognition. Employers must also create a policy detailing how this data will be handled. This law aims to protect employees' biometric information and ensure its secure use. Employers should review and audit current data practices, update policies, and ensure employee consent for biometric data collection to comply with these new requirements.

On June 5, 2023, Governor Polis signed the Ensure Equal Pay for Equal Work Act, amending the Equal Pay for Equal Work Act (EPEW) to clarify and enhance an employer’s obligations relating to announcement of a new role or promotional opportunity (which the Act refers to as a “job opportunity”). 

Among other updates, the state narrowed the notice requirements for certain out-of-state employers and certain promotions (e.g. “career progressions”), and added a notice requirement around the final selected candidate for a given job opportunity. Employers should review and revise their job posting and promotion processes accordingly.

The Colorado Healthy Families and Workplaces Act (HFWA) requires employers to provide up to 48 hours of paid sick leave per year to eligible employees. Beginning on August 7, 2023, employees will be permitted to use their sick leave for expanded reasons such as bereavement and the need to evacuate their residence due to inclement weather. Employers should review and revise their current policies to reflect the new sick leave requirements.