In the 2019 legislative session, the Colorado legislature passed substantial Colorado Wage Act amendments that took effect on January 1, 2020. These changes significantly increase criminal penalties for wage theft in Colorado and expand the potential for personal liability under the Wage Act for individuals who act on behalf of an employer.
CRIMINAL PENALTIES FOR WAGE THEFT IN COLORADO
Previously, violations of the Colorado Wage Act could be prosecuted as misdemeanors. These included the willful refusal to pay wages, falsely denying the amount or validity of a wage claim to underpay or harass an employee, or the intentional failure to pay minimum wage. Under the amended law, found at C.R.S. § 8-4-114(2), such conduct is now classified as theft under Colorado law, aligning it with the general theft statute (§ 18-4-401).
By redefining these violations as theft, the legislature introduced a broader spectrum of criminal penalties for Wage Act violiations. Depending on the amount of unpaid wages, offenses can range from a Class 1 Petty Offense (less than $50) to a Class 2 Felony (more than $1 million). Conviction could result in substantial fines and even imprisonment—up to six months and $500 for the lowest-level offense.
EXPANDED EMPLOYER DEFINITION AND PERSONAL LIABILITY
Another key Colorado Wage Law change concerns the definition of “employer.” The amendment was a direct response to the Colorado Supreme Court’s decision in Leonard v. McMorris, 63 P.3d 323 (Colo. 2003), which held that individual officers or agents could not be personally liable under the previous version of the Wage Act.
The revised Colrado Employer Liability definition now mirrors the FLSA Employer Definition used in the federal Fair Labor Standards Act. Under 29 U.S.C. § 203(d), an “employer” includes “any person acting directly or indirectly in the interest of an employer in relation to an employee.” Courts interpreting this definition have routinely imposed personal liability under Wage Laws. The Colorado amendment reflects an intent to allow similar liability under state law.
WHAT COLORADO EMPLOYERS AND EMPLOYEES SHOULD KNOW
These Colorado Wage Act amendments carry significant implications for both employers and employees:
For Employers:
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Reevaluate wage policies and payroll practices to ensure full compliance with Colrado Wage payment laws.
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Recognize that company officers and managers may now face personal liability under the Wage Act for noncompliance.
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Understand that violations could result in criminal penalties for Wage Theft —not just civil claims.
For Employees:
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You now have stronger enforcement tools if you’re the victim of Wage Theft in Colorado.
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The law allows for broader accountability, meaning individuals—such as supervisors or company owners—may be held personally responsible for unpaid wages.
STRENGTHENED ENFORCEMENT AND BROADER ACCOUNTABILITY IN 2020
The 2020 Colorado Wage Act amendments represent a clear effort by the legislature to deter Wage Law violations and hold employers—including individuals—accountable. By aligning the definition of “employer” with the FLSA employer definition and increasing criminal penalties for Wage Theft, Colorado lawmakers have expanded the scope and seriousness of Wage Law enforcement in the state.
Employers should act proactively to revise internal policies and educate their leadership teams. Employees should be aware of their enhanced rights and enforcement options. These changes mark a major turning point in Colorado’s approach to wage protection.