Colorado Employers: Are You Complying With New Legal Requirements Restricting Retention Of Employee Identification Documents?

Colorado employers should review their Form I-9 and employment eligibility verification procedures following the enactment of House Bill 26-1283.The new law became effective on June 3, 2026 and added new restrictions on an employer’s possession and retention of government-issued identification documents.

The law, codified at C.R.S. § 8-2-124.5, generally prohibits an employer or its agent from demanding, confiscating, retaining, or otherwise requiring an employee, applicant, or other individual performing or seeking work to surrender a government-issued identification card. The law does, however, recognize the practical need for employers to review identification documents when completing Form I-9.

Employers may request and temporarily possess a government-issued identification card for purposes of verifying employment eligibility on Form I-9 or a successor form. If an employer takes possession of an original identification card, it may retain the original only as long as necessary to complete the verification and make a permitted copy, and never for more than ten hours. Employers may retain a copy of the document in their employment records.

The law also permits retention of an identification document when otherwise required or permitted by state or federal law or regulation, or pursuant to a signed judicial warrant.

A New Written Notice Requirement

Of particular importance for routine hiring practices, Colorado employers must now provide a written notice when verifying an individual’s employment eligibility. The notice must inform the individual of the law’s restrictions on an employer’s possession and retention of government-issued identification cards.

The notice must be provided in English and, if the employer knows the individual’s primary language is not English, in that primary language as well. Employers must also obtain an acknowledgment from the individual and retain a record of the notice and acknowledgment in their employment records.

Employers should therefore incorporate the notice into their onboarding and Form I-9 procedures and should consider using the same process whenever a required Form I-9 reverification occurs.

What Employers Should Do Now

Colorado employers should review their onboarding and reverification procedures to confirm that:

• originals of government-issued identification cards are returned promptly after review and any permitted copying;
• no original identification card is retained longer than necessary or, in any event, longer than ten hours;
• the required written notice is provided as part of the employment eligibility verification process;
• translated notices are provided when an employee’s non-English primary language is known; and
• the employer retains documentation showing that the notice was provided and acknowledged.

Employers should also train HR personnel and other employees responsible for Form I-9 compliance so that the new Colorado requirements are incorporated into existing federal verification procedures.

Employers may consider using a notice that addresses the statutory requirements. Because legal requirements can change and may vary based on a company’s circumstances, employers should not rely solely on AI-generated content or information found online. The notice should be reviewed by legal counsel and tailored to the employer’s specific needs.

Colorado employers that have not already updated their Form I-9 procedures should do so promptly. Employers with questions regarding HB 26-1283, employment eligibility verification, or implementation of the required notice should consult with employment counsel.

This client alert is for general informational purposes only and does not constitute legal advice. labor and employment law is fact-specific, and readers should consult qualified legal counsel regarding their individual circumstances.