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Colorado Wage Claim Changes - Effective 1/1/2023

Posted by Stephen B. Rotter | Nov 29, 2022 | 0 Comments

Colorado Wage Claim Changes – Effective January 1, 2023:

1.    Increase of penalties for not paying wages within 14 days of a demand from 1.25 x the wages owed to 2x wages owed (unless it's under $1000, then it's $1000).

2.    For willful non-payment wages, employers will owe the wages plus 3x wages for the penalty (unless it's under $1000, then it's $3000). The designation of “willfulness” is automatic for employers who have a subsequent failure to pay wages within 5 years of a claim.

3.    Limited ability for employers to collect attorney's fees: if the Division orders a wage amount owed to the employee less than the amount the employer paid in response to a wage demand, and the employer paid it within 14 days of receiving the wage demand, employers can launch a separate action seeking recovery of the overage amount and attorney's fees.

4.    Division authority to award attorney's fees if the employee was deemed to have more than $5,000 in unpaid wages.

5.    Ability for claimant to bring complaint on behalf of similarly situated employees – akin to a class action, which the Division will investigate. Division limit remains $7,500 per employee for investigation purposes (no limit for Court-filed action).

6.    In August 2023, employees can file a private right of action for discrimination or retaliation over filing a wage complaint and recover back pay, reinstatement, liquidated damages, attorney's fees, and other penalties.

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