In 2025, the Colorado legislature again demonstrated its keen interest in workplace legislation. Key employment law bills included the following:
- House Bill 25-1001, which was signed by the Governor on May 22, 2025, amended the Colorado Wage Claim Act to substantially increase potential liability for wage claims. The bill makes minority owners of a company with at least a 25% ownership interest liable for wage claims unless they prove they fully delegated their duties regarding day-to-day operations of the employer; increases the jurisdiction of the Colorado Department of Labor and Employment (CDLE) to handle wage claims through administrative procedures from $7,500 to $13,000; instructs the CDLE to report violators to other agencies; increases fines for misclassifying employees as independent contractors; makes it more difficult for an employer who successfully defends itself from a wage claim to recover its attorneys' fees from the employee; allows employees to recover compensatory damages (such as emotional distress damages) from an employer subject to a damages cap; makes non-employers (such as contractors) liable for retaliating against employees who report wage claims; and creates a presumption that an adverse action within 90 days of a wage claim is retaliatory.
- Senate Bill 25-083, Limitations on Restrictive Employment Agreements, makes it more difficult to enforce covenants-not-to-compete (non-compete and non-solicitation agreements) against physicians, and expands those protections to cover dentists and nurses. The bill also expands protections for minority shareholders of companies. The bill has been signed into law by the Governor.
- Senate Bill 25-005, the "Worker Protection Act," would have amended the Labor Peace Act to eliminate the second vote necessary to require all employees, including those who are not union members, to pay union dues. The bill passed both houses of the legislature with voting along party lines. However, on May 16, 2025, Governor Polis vetoed it. See: Governor Polis Vetoes Amendments to Labor Peace Act.
- House Bill 25-1286, "Concerning Protecting Workers from Exposure to Extreme Temperatures," would have required employers to comply with detailed procedures to protect employees from temperature variations, including monitoring temperature and humidity levels, "cool down breaks," 15-minute rest breaks every two hours (under current law, 10-minute breaks are required every 4 hours), a "buddy system," and to develop a "temperature-related injury and illness prevention plan." The requirements would have been triggered during "extreme" temperatures, defined as below 30 degrees Fahrenheit and above 90 degrees Fahrenheit. The bill essentially "died" when the House Committee on Business Affairs & Labor postponed it indefinitely.
- House Bill 25-1264 would have limited use of artificial intelligence (AI) by employers for such things as tracking employees' productivity. It also would have limited business' ability to analyze consumer preferences and purchasing through AI. The bill failed to pass out of the House Committee on Judiciary.
- House Bill 25-1300, Workers' Compensation Benefits Proof of Entitlement, amended Colorado's workers compensation law to allow workers to choose from a comprehensive list of providers, instead of a minimum of four providers under existing law. Another provision, which would have changed the burden of proof, was removed. The bill passed the legislature and is before the Governor.
- House Bill 25-1212, Public Safety Protections Artificial Intelligence, would have prohibited retaliation against those who report violations of applicable laws by AI developers. It would have created a private cause of action for whistleblowers, which would have allowed them to recover damages, penalties and attorneys' fees. The bill failed to pass the House.
- Noticeably absent from the 2025 session was legislation to address certain deficiencies the 2024 AI bill, SB24-205. In 2024, the Governor signed SB24-205 into law but asked the sponsors to pass legislation to improve it in the 2025 session. Legislation was introduced but failed to pass, leaving many, including the Governor, disappointed and the people of Colorado with a problematic law.
The legislature is likely to consider some of the bills they did not pass, especially bills relating to AI and workplace conditions, in the next legislative session.
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