Enforcement - duty of director - duties of district or city attorneys - local government authority to enact and enforce laws - rules

8-4-111. Enforcement - duty of director - duties of district or city attorneys - local government authority to enact and enforce laws - rules. (1) (a) (I) It is the duty of the director to: (A) Inquire diligently for any violation of this article 4; (B) Institute the actions for penalties or fines provided for in this article 4 in such cases as the director deems proper; and (C) Enforce generally the provisions of this article 4. (II) The director may establish an administrative procedure to receive complaints and adjudicate claims for nonpayment of wages or compensation of: (A) Seven thousand five hundred dollars or less for claims filed through June 30, 2026; (B) Thirteen thousand dollars or less for claims filed from July 1, 2026, through December 31, 2027; and (C) An amount that the director specifies in rule by January 1, 2028, and by rule for every other year thereafter. Such amount must be equal to the amount in the previous calendar year increased by one thousand dollars or a higher amount if such higher amount is necessary to adjust for inflation. 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 for by urban consumers. (III) The procedures established pursuant to subsection (1)(a)(II) of this section may include claims of employees where no interruption of the employer-employee relationship has occurred. (IV) The penalties and fines established by section 8-4-109 (3) apply to actions instituted by the director or adjudicated after a complaint was received under this article 4 when no interruption of the employer-employee relationship has occurred. (a.5) In carrying out the duties specified in subsection (1)(a)(I) of this section, the director: (I) Shall publish on the division's website, for any violation that is a matter of public record pursuant to section 8-1-115 (1)(b), the citation, determination, or written opinion; whether the violation was willful; and the names of all employers in violation; (II) Shall report an employer with a willful violation unremedied within sixty days after the division's finding to any government body with authority to deny, withdraw, or otherwise limit or impose remedial conditions on the employer's license, permit, registration, or other credential. The division may post a decision against an employer by a government body on the division's website. (III) May report an employer found to have violated a law related to wages and hours to a government body with authority to deny, withdraw, or otherwise limit or impose remedial conditions on the employer's license, permit, registration, or other credential. The division may post a decision against an employer by a government body on the division's website. (b) The director shall promulgate rules providing for notice to employees of an employee's rights under this section and section 8-4-111.5, of the limitations on the amount of wages, compensation, and penalties available under the administrative remedy, and of the employee's option to bring a claim for wages and compensation in court without pursuing the administrative remedy unless the employee has accepted payment pursuant to subsection (2)(e) of this section. (c) For purposes of investigating wage complaints and facilitating the collection of unpaid wages before or after a determination pursuant to this section, the division may apply the information-gathering provisions of article 1 of this title 8 to any employer, employee, or other person or entity. (2) (a) (I) The division shall investigate a wage complaint if one or more employees file the wage complaint with the division claiming unpaid wages or compensation, exclusive of penalties and fines, of seven thousand five hundred dollars or less per employee for claims filed through June 30, 2026; thirteen thousand dollars or less for claims filed from July 1, 2026, through December 31, 2027; and an amount that the director specifies in rule by January 1, 2028, and by rule for every other year thereafter. Such amount must be equal to the amount in the previous calendar year increased by one thousand dollars or a higher amount if such higher amount is necessary to adjust for inflation. 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 for by urban consumers. The division may investigate a wage complaint made on behalf of a group of similarly situated employees. If the division declines to investigate a group complaint, similarly situated employees may consent in writing to participate as parties to that complaint, and the division may pursue a direct investigation informed by and concurrent with that complaint. The division shall initiate the administrative procedure by sending a notice of complaint to the employer by mail or electronic means in accordance with rules as the director may promulgate when the complaint states a claim for relief. The notice of the complaint must include: (A) The name of the complainant; (B) The nature of the complaint; and (C) The amount for which the employer may be liable, including any potential fines or penalties. (II) An employer must respond within fourteen days after the complaint is sent. (III) Repealed. (b) If the division does not find a violation based on the wage complaint and any response, including the failure by the employee to pursue the wage complaint, the division shall issue a notice of the dismissal of the complaint and send the notice to all interested parties. The notice must set forth the employee's right to any other relief available under this section or section 8-4-111.5. (c) (I) If the division determines that an employer has violated this article 4 for nonpayment of wages or compensation, the division shall issue a citation and notice of assessment for the amount determined that is owed, which amount must include all wages and compensation owed, penalties pursuant to section 8-4-109, and any fines pursuant to section 8-4-113. (II) The division shall notify the worker and employee protection unit in the department of law created in section 24-31-1302, at least once every six months, of any determinations pursuant to this subsection (2)(c) that were based, in whole or in part, on a finding that the employer misclassified one or more employees as independent contractors. (d) To encourage compliance by the employer, if the employer pays the employee all wages and compensation owed within fourteen days after the citation and notice of assessment is sent to the employer, the division may waive or reduce any fines imposed pursuant to section 8-4-113 (1) and reduce by up to fifty percent penalties imposed pursuant to section 8-4-109. (e) Upon payment by an employer, and acceptance by an employee, of all wages, compensation, and penalties assessed by the division in a citation and notice of assessment issued to the employer, the payment shall constitute a full and complete satisfaction by the employer and bar the employee from initiating or pursuing any civil action or other administrative proceeding based on the wage complaint addressed by the citation and notice of assessment. (f) If an employer fails to pay an employee the amount the division determines, pursuant to subsection (2)(c) of this section, or a hearing officer determines, pursuant to section 8-4-111.5, to be owed within sixty days after the division's determination or the hearing officer's decision, whichever is applicable, the following may be recovered from the employer: (I) Attorney fees incurred in pursuing a civil action to enforce the division's determination or the hearing officer's decision; (II) An additional fine equal to fifty percent of the amount determined pursuant to subsection (2)(c) of this section; and (III) A penalty equal to the greater of fifty percent of the amount determined pursuant to subsection (2)(c) of this section or three thousand dollars. (3) An employee who has filed a wage complaint with the division pursuant to subsection (2) of this section may elect to terminate the division's administrative procedure within thirty-five days after the issuance of the determination of compliance or citation and notice of assessment by providing a notice to the division. An employee who terminates the division's administrative procedure preserves any private right of action the employee may have. Upon receipt of the notice, the division shall immediately discontinue its action against the employer and revoke any citation and notice of assessment sent. (4) Except for an appeal pursuant to section 8-4-111.5 (5) or as stated in a citation, notice of assessment, or order filed with the court pursuant to section 8-4-113 (2), any determination made by the division pursuant to this article, or any offer of payment by the employer of the wages made during or in conjunction with a proceeding of the division, is not admissible in any court action. (5) The division's notice to the employer of a complaint filed pursuant to subsection (2) of this section satisfies the requirement of a written demand as described in section 8-4-109 (3)(a). (6) Nothing in this section shall be construed to limit the right of the division to pursue any action available with respect to an employee that is identified as a result of a wage complaint or with respect to an employer in the absence of a wage complaint. (7) Nothing in this section shall be construed to limit the right of the employee to pursue any civil action or administrative proceeding for any claims other than those considered by the division in the employee's wage complaint. The claims considered by the division in the employee's wage complaint are subject to the limitations set forth in paragraph (e) of subsection (2) of this section and subsection (3) of this section. (8) Nothing in this article 4 limits: (a) The authority of the district attorney of any county or city and county, or a person delegated authority by a county or city and county to prosecute criminal offenses or enforce laws or ordinances related to the payments of wages, to: (I) Prosecute actions for violations of this article 4 that may come to the district attorney's or the delegated person's knowledge; or (II) Enforce this article 4 independently and without specific direction of the director; or (b) The right of any wage claimant to sue directly or through an assignee for any wages or penalty or other relief available pursuant to this article 4. (9) A city, county, or city and county may enact and enforce laws related to the payment of wages for work performed within its jurisdiction if the laws do not diminish the protections or benefits to employees provided in this article 4. Source: L. 2003: Entire article amended with relocations, p. 1858, � 1, effective August 6. L. 2014: Entire section amended, (SB 14-005), ch. 276, p. 1114, � 5, effective May 29. L. 2022: (1), IP(2)(a)(I), and (2)(c) amended and (2)(f) added, (SB 22-161), ch. 370, p. 2631, � 9, effective January 1, 2023. L. 2025: (1)(a)(II), IP(2)(a)(I), and (8) amended, (1)(a.5) and (9) added, and (2)(a)(III) repealed, (HB 25-1001), ch. 228, p. 1041, � 5, effective August 6. Editor's note: (1) Subsection (2) is similar to former � 8-4-112 as it existed prior to 2003. (2) Section 10(2) of chapter 228 (HB 25-1001), Session Laws of Colorado 2025, provides that the act changing this section applies to conduct occurring on or after August 6, 2025. Cross references: For the short title (Wage Protection Act of 2014) in SB 14-005, see section 1 of chapter 276, Session Laws of Colorado 2014.