Colorado Legislative Updates: Key Bills Impacting Employers - HR ALERTS

Colorado Legislative Updates: Key Bills Impacting Employers

Effective: TBD

With the Colorado legislative session in full swing, several proposed bills could have significant implications for employers and HR professionals. Here are some key developments:

Colorado Worker Protection Collective Bargaining (SB25-005)

This bill aims to repeal a long-standing labor law requiring a second vote before union dues become mandatory. If passed, only one vote would be needed to form a union and collect dues. The bill has cleared the Senate and is now in the House Appropriations Committee.

Ballot Initiative 43: Just-Cause Termination

A proposed ballot initiative, if passed in 2026, would make Colorado only the second state in the U.S. to require just-cause termination for private-sector employees. The measure would prohibit companies with more than eight employees from firing or suspending workers without just cause, which is defined as substandard performance, repeated policy violations, gross insubordination, or certain criminal convictions. If enacted, employers could face reinstatement orders, back pay requirements, and legal fees for wrongful terminations. The initiative is still in its early stages and must clear multiple hurdles before making the ballot.

Enforcement of Wage & Hour Laws (HB25-1001) 

This bill proposes raising the threshold for filing wage claims with the Colorado Department of Labor from $7,500 to $13,500, with future adjustments for inflation. If enacted, employers should review compensation policies, ensuring compliance with wage laws, off-the-clock work policies, and required break periods.

Local Governments & Tipped Wages (HB25-1208) 

This bill would reduce the minimum wage for restaurants in cities or counties that have raised local minimums above the state-required $14.81 per hour. It has passed the House and is expected to move to the Senate.

Protecting Workers from Extreme Temperatures (HB25-1286)

This bill outlines employer requirements to protect workers from extreme temperatures (above 80°F or below 30°F), including access to shade, heated areas, scheduled breaks, and drinking water. Employers would also need to establish procedures to prevent heat and cold stress.

The legislature is also considering changes to noncompete agreements, particularly for physicians. With the session ending on May 7, employers should stay informed as these bills progress.

For updates, visit the Colorado General Assembly website.

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