Colorado clarifies and expands enforcement processes, remedies and penalties related to a variety of wage, misclassification, safety and enforcement procedures

By SB 22-161, the Colorado legislature clarified and expanded a number of enforcement processes, remedies and penalties related to a variety of wage, misclassification, safety and enforcement procedures. Included in the changes are restructurings of the ways and procedures by which penalties can be assessed, as well as enhancement of available remedies and penalty amounts.

Employers should note, even without being involved in a litigation or enforcement action, they will no longer be able to withhold from a final paycheck for an employee’s failure to return property or repay money unless the employer, first, provides the employee, within 10 days following the employee’s separation from employment, written notice, which “must include a written accounting specifying the amount of money or the specific property that the employee failed to pay or return, the replacement value of the property, and, to the extent known, when the money or property was provided to the employee and when the employer believes the employee should have paid the money or returned the property to the employer.” Thereafter, the employee will have 14 days to return/repay, and if the employee does, the employer will have 14 days to pay the employee the amount deducted.

Additionally employers should note that a new 14-day provision applies for employers to pay in response to a written demand, agency claim, lawsuit, etc., for unpaid wages. Compliance/non-compliance with this procedure has the ability then to initiate shifting exposures for remedies, penalties, and even possible attorney fees.