In 2023, the City of Denver adopted the Civil Wage Theft Ordinance. The new ordinance creates new procedures and penalties regarding civil wage theft. The Ordinance provides significant protections for employees and independent contractors who work within the City and County of Denver.
Jump to: What is Wage Theft? | Penalties & Statute of Limitations | Retaliation Protections | Up-The-Chain Accountability | Filing a Complaint | Wage Theft FAQs
What is Wage Theft in Colorado?
Under the Ordinance, wage theft occurs when an employee is not paid the wages to which they are entitled, as promised by the employer and as required by law. The term wages encompasses the minimum wage, salaries, overtime pay, paid sick time, and other money earned for the time spent working.
Who Is Covered By The Denver Wage Theft Ordinance?
The Ordinance applies to all employers operating in the City and County of Denver and all workers who work in Denver. The statute covers traditional employees and independent contractors. The Ordinance excludes government entities from coverage.
Penalties and the Wage Theft Statute of Limitations
The Denver Ordinance provides more severe penalties and a longer statute of limitations than other state wage statutes. An aggrieved employee may recover three times the amount of unpaid wages. Under the Colorado Wage Claim Act, an employee can typically recover only two times the unpaid wages, and three times only if they prove a “willful” violation. A willful violation need not be proved under the Denver Ordinance to recover the treble (three times) liquidated damages amount.
The timeline to file is also extended. Under the Denver Wage Theft Ordinance, the wage theft statute of limitations is three years. Under the Colorado Wage Act, the standard statute of limitations is only two years, and a three-year statute of limitations is only available for willful violations.
Higher Interest Rates for Unpaid Wages
Under the Denver Wage Theft Ordinance, a prevailing employee is entitled to interest on unpaid wages at a highly favorable rate of 12% per year.
Strict Prohibitions Against Employer Retaliation
The Denver Wage Theft Ordinance strictly prohibits retaliation against employees who complain about unlawful wage practices. Under the Ordinance, there is a rebuttable presumption that any adverse action against an employee within 90 days of a complaint constitutes retaliation. This presumption may only be rebutted by clear and convincing evidence that the action was taken for legitimate reasons unrelated to the complaint.
“Up-The-Chain” Accountability for Contractors
The Denver Ordinance creates liability not only for direct employers but also for “up-the-chain” companies that hire contractors who fail to pay their employees. For example, a hotel might hire a cleaning company, or a general contractor might hire a subcontractor to provide labor.
Under the Ordinance, “up-the-chain accountability” means that any employer who ultimately benefits from a worker’s labor may be required to pay their wages if the immediate employer fails to do so. This liability attaches to companies regularly engaged in business activity, but only after the Denver Auditor provides notice of the potential violation and attempts to collect from the actual employer.
Filing a Complaint & Hiring a Theft Claim Attorney in Denver
If an employee or independent contractor is not paid earned wages, they may file a complaint with Denver Labor. Denver Labor will investigate all allegations of wage theft and help the worker collect the money they are owed, plus interest. Employees also have a private right of action and may institute action in Denver District Court.
Requirements for Denver Businesses
Denver businesses must post auditor-approved signage in English and Spanish. If that’s not possible, businesses must provide the information to workers individually, in their primary language, in an accessible way. Businesses must also retain payroll records for at least 3 years, comply with any auditor investigation, and refrain from retaliating against employees.
Baird Quinn has significant experience representing clients on civil wage theft claims. Please let a Denver theft claim lawyer at Baird Quinn assist you with any issues involving wage theft or compliance.
Frequently Asked Questions: Denver Wage Theft
What is the wage theft statute of limitations in Denver?
Under the Denver Civil Wage Theft Ordinance, the statute of limitations to file a claim for unpaid wages is three (3) years. This is longer than the standard two-year limit provided under the Colorado Wage Claim Act for non-willful violations.
Can an independent contractor file a wage theft claim in Denver?
Yes. Unlike many traditional employment laws that only cover W-2 employees, the Denver Wage Theft Ordinance explicitly provides protections for both traditional employees and independent contractors working within the City and County of Denver.
Do I need a theft claim lawyer in Denver to recover my wages?
While you can file a complaint directly with Denver Labor, consulting with an experienced Denver theft claim attorney is highly recommended if you wish to file a private lawsuit in Denver District Court. An attorney can help you aggressively pursue treble damages (three times your unpaid wages) and the 12% annual interest provided by the ordinance.