Penalty and damages for violations

8-12-116. Penalty and damages for violations. (1) Any person, including any firm or corporation, or any agent, manager, superintendent, or foreperson of any firm or corporation, that, individually or through an agent, subagent, manager, superintendent, or foreperson, violates or fails to comply with this article 12 is subject to the following penalties: (a) Except as described in subsections (1)(c) and (5) of this section, a person who commits a violation of section 8-12-110 or rules promulgated under that section shall be required to pay a fine of not less than two thousand dollars but not more than four thousand dollars; (b) Except as described in subsections (1)(d) and (5) of this section, a person who commits a violation of any provision of this article 12 other than section 8-12-110 shall be required to pay a fine of not less than two hundred fifty dollars but not more than one thousand dollars; (c) A person who commits a willful violation of section 8-12-110 or rules promulgated under that section or a second or subsequent violation of section 8-12-110 or rules promulgated under that section within five years after the person's most recent violation of this article 12 shall be required to pay a fine of not less than five thousand dollars but not more than ten thousand dollars; and (d) A person who commits a willful violation of any provision of this article 12 other than section 8-12-110 or a second or subsequent violation of any provision of this article 12 other than section 8-12-110 within five years after the person's most recent violation of this article 12 shall be required to pay a fine of not less than five hundred dollars but not more than four thousand dollars. (2) The division shall collect all penalties imposed by subsection (1) of this section as provided in section 8-1-142 and transmit the collected penalties to the state treasurer. The state treasurer shall deposit the money into the wage theft enforcement fund created in section 8-4-113 (3). (3) In addition to any penalties to which a person may be subject pursuant to subsection (1) of this section, any person, including any firm or corporation, or any agent, manager, superintendent, or foreperson of any firm or corporation, that, individually or through an agent, subagent, foreperson, superintendent, or manager, violates or fails to comply with this article 12 is liable for damages in the following amounts payable to any individual aggrieved: (a) Except as described in subsections (3)(c) and (5) of this section, not less than seven thousand dollars but not more than twenty-seven thousand dollars for the first violation of section 8-12-110 or rules promulgated under that section; (b) Except as described in subsections (3)(d) and (5) of this section, not less than five hundred dollars but not more than two thousand dollars for the first violation of any provision of this article 12 other than section 8-12-110; (c) Not less than fifteen thousand dollars but not more than sixty-five thousand dollars for a willful violation of section 8-12-110 or rules promulgated under that section or a second or subsequent violation of section 8-12-110 or rules promulgated under that section within five years after the person's most recent violation of this article 12; or (d) Not less than two thousand dollars but not more than six thousand dollars for a willful violation of any provision of this article 12 other than section 8-12-110 or a second or subsequent violation of any provision of this article 12 other than section 8-12-110 within five years after the person's most recent violation of this article 12. (4) All damages that a person is ordered to pay pursuant to subsection (3) of this section must be paid to the person aggrieved unless that person, after reasonable and diligent effort by the director, cannot be found, in which case the damages must be paid to the state treasurer, who shall deposit the money into the wage theft enforcement fund created in section 8-4-113 (3). (5) (a) The division may reduce or decline to impose penalties or damages pursuant to subsection (1) or (3) of this section if: (I) The minor worker intentionally misled the employer with regard to the minor's age; and (II) The employer engaged in outreach to a reliable third party to verify the minor worker's age if any reasonable employer could have believed that the minor worker might be under eighteen years of age at the time of hiring. The receipt of an age certificate, as described in section 8-12-111, constitutes outreach to a reliable third party. (b) In determining whether to reduce or decline to impose damages as described in subsection (5)(a) of this section, the division shall consider the following factors: (I) The reasonableness of efforts taken by the employer to verify the age of the minor worker; (II) The employer's history of compliance or noncompliance with this article 12; (III) Corrective action taken by the employer; and (IV) Harm to the minor worker. (6) In addition to any penalties or damages to which a person may be subject pursuant to subsection (1) or (3) of this section, any person, firm, or corporation, or any agent, manager, superintendent, or foreman of any firm or corporation, who, by oneself or through an agent, subagent, foreman, superintendent, or manager, knowingly violates or knowingly fails to comply with any of the provisions of this article 12 commits a misdemeanor and, upon conviction thereof, shall be punished by a fine of not less than two hundred dollars nor more than five hundred dollars for each offense. Upon conviction of a second or subsequent offense, such person shall be punished by a fine of not less than five hundred dollars nor more than two thousand dollars. (7) On January 1, 2026, and on January 1 of each year thereafter, the division shall increase the penalty and damage amounts described in this section for inflation, if any. The division may round the adjusted amount upward to the nearest dollar. Inflation is measured by the annual percentage change in the United States department of labor's bureau of labor statistics consumer price index, or a successor index, for Denver-Aurora-Lakewood for all items paid by urban consumers. The director shall publish updated penalty and damage amounts annually. Source: L. 71: R&RE, p. 897, � 1. C.R.S. 1963: � 80-6-16. L. 2021: (2) amended, (SB 21-271), ch. 462, p. 3141, � 90, effective March 1, 2022. L. 2024: Entire section amended, (HB 24-1095), ch. 378, p. 2564, � 2, effective January 1, 2025.