Colorado’s Wage Protection Act of 2014 Effective January 1, 2015

money-548948_1280The Wage Protection Act of 2014, signed by Colorado’s Governor John Hickenlooper on May 29, 2014, goes into effect on January 1, 2015, expanding existing state law to include additional types of wage claims and granting the Colorado Department of Labor and Employment (DOLE) more authority to pursue claims on behalf of employees.  This law applies to all private employers with one or more employees in Colorado.

This Act:

  • Expands coverage to include claims filed by current employees,
  • Allows employees who are paid less than minimum wage to recover attorneys’ fees as a remedy,
  • Changes notice of claim requirements allowing employees 2 years to file a complaint with DOLE or a court (employees were previously required to make a written demand to their employers within 60 days),
  • Requires employers to keep all records reflecting the information on an employee’s pay stub for three years after payment of wages.  Employers must provide these records to the division or the employee upon request.  (Violations of this recordkeeping requirement include a fine of up to $250 per month, per employee, up to a total of $7,500), and
  • Provides the division with the authority and resources necessary to adjudicate claims and impose new penalties and fines.

Colorado employers should review their recordkeeping policies to ensure they are in compliance with the new requirements and train management staff of the importance of responding to all wage complaints in a timely manner.

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