Colorado
Colorado: Legislative Updates
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Discussion
The Colorado legislature passed several new laws affecting employer obligations across voting leave, workplace safety, transportation, and workers’ compensation. Below is a summary of the key measures that employers should be aware of.
Expanded Paid Voting Leave. As of June 1, 2026, HB 1113 expands Colorado’s existing paid voting leave protections by giving employees greater flexibility in when they may take leave to vote. Under the new law, employees may take up to two hours of paid leave on any day that voter service and polling centers are open, representing a significant expansion from the prior framework, which limited paid leave to Election Day only. Employees must request leave before the election for which leave is sought. Under the amended law, employers may deny leave only if an employee has three or more consecutive nonworking hours while voter service and polling centers are open on the relevant day, rather than measuring that window against Election Day polling hours as under prior law. Other provisions of the law remain unchanged, including the prohibitions on discharging, penalizing, or deducting wages for eligible leave, the requirement that hourly employees receive their regular wages for up to two hours, and the employer’s ability to designate the leave hours, subject to an employee’s request that they fall at the beginning or end of a shift.
Extreme Temperature Worker Protections. HB 1272 establishes a framework for future statewide protections for workers exposed to extreme temperatures, applicable to all employers covered by the federal Fair Labor Standards Act. On or before January 15, 2027, the Colorado Department of Labor and Employment’s (CDLE) Division of Labor Standards and Statistics (DLSS) will begin collecting data on temperature-related workplace injuries, illnesses, and emergencies. By July 1, 2028, the DLSS must also publish a model Temperature-Related Injury and Illness Prevention Plan for worksites and adopt rules as necessary to implement it.
New Operational Requirements for Transportation Network Companies. Effective January 1, 2027, HB 1043 strengthens Colorado’s nondiscrimination requirements for transportation network companies (TNCs). The maximum civil penalty for a driver’s prohibited discrimination increases from $550 to $1,300, and Colorado’s Public Utilities Commission may assess the penalty even without prior written notice to the TNC of the driver’s discrimination. Additionally, certain TNCs will be subject to monthly rather than annual reporting requirements, and these reports will be anonymized and made publicly available. TNCs must also provide consumers with a mechanism for reporting a driver’s refusal to provide transport and must educate drivers on the transportation of riders with service animals. Such mandatory service animal training must be completed by July 1, 2027, or, if later, within six months of a driver joining the TNC platform.
Workers’ Compensation Insurance Verification in Construction. As of May 29, 2026, SB 093 requires applicants for a building or construction permit for projects with total construction costs exceeding $1 million (excluding permits issued by the state’s Division of Professions and Occupations) to file a signed declaration with the permitting agency before starting work. The declaration must verify that the applicant, and any subcontractor working under the permit, either carries valid workers’ compensation coverage or has properly rejected it. The law also empowers any person to file a complaint with the state’s Division of Workers’ Compensation alleging non-compliant coverage.
Adjustment of Experience Modification Factor. Effective January 1, 2027, SB 175 provides employers with a mechanism to correct an inflated experience modification factor (EMF) after a workers’ compensation claim closes for less than its original reserve amount. Employers, or their insurance producers, may request that a carrier direct the rating bureau to revise the EMF to reflect the actual amount paid on a closed claim, provided the request is made within a defined window and the adjustment would meaningfully reduce the EMF. Carriers must then apply for any resulting premium credit.
Action Items
- Update voting leave policy to reflect expanded, multi-day leave window.
- Begin evaluating worksites for exposure of extreme temperatures, as applicable.
- Monitor CDLE’s forthcoming guidance and temperature-safety model plan.
- Update TNC driver-facing training and prepare for new monthly reporting requirements, as applicable.
- Update pre-project permitting procedures for compliance with workers’ compensation verification requirements, as applicable.
- Consult with insurance producers on EMF adjustments.
- Have appropriate personnel trained on all applicable requirements.
Colorado: EFAA Arbitration Exception Extends to Related Retaliation Claims
On July 9, 2026, in Dreifus v. Glenarm Dining Services, Inc., a Colorado Court of Appeals panel held that the federal Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA) blocked an employer’s attempt to send an employee’s retaliation claims to arbitration, even though those claims were based on her termination rather than the harassment itself. The employee, a bartender, had complained about a supervisor’s sexual harassment and filed a discrimination lawsuit. She was later terminated and sought to add retaliation allegations tied to that termination to her existing case. The employer argued its arbitration agreement should apply to the retaliation claims because they were separate from the original harassment allegations. The court disagreed, finding that because the employee alleged her termination was based at least in part on her harassment complaint and lawsuit, the entire case, not just the harassment claims themselves, fell under the EFAA’s exemption from mandatory arbitration. The case serves as a useful reminder that the EFAA’s arbitration carve-out can sometimes reach beyond the harassment claim itself to cover related allegations. Employers should consult with legal counsel on the application of mandatory arbitration agreements to specific claims raised by current or former employees.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase