Colorado
Discussion
Colorado: AI Anti-Discrimination Law Blocked Pending Further Review
In 2024, Colorado passed a first-of-its-kind AI anti-discrimination law, which was set to take effect on June 30, 2026. On April 27, 2026, a federal court issued a restraining order to temporarily block enforcement of the law, following a lawsuit filed by xAI and the U.S. Department of Justice (DOJ) that challenged Colorado’s law on First Amendment, Commerce Clause, and Equal Protection grounds. Although the court did not weigh in on the substantive arguments asserted by xAI or the DOJ, the court’s order protects employers from investigations or penalties for any alleged violations until the court issues a final ruling on whether the law should be permanently enjoined. The court has directed the plaintiffs to file a more comprehensive motion to block the law within 28 days after the legislature passes amended legislation or the state Attorney General issues final implementing regulations. This development comes as part of ongoing scrutiny of the law, including a previous proposal to substantially rewrite the law and push the effective date back to January 1, 2027. Colorado employers currently have no immediate compliance obligations under the law, but should monitor the legislative session and court proceedings closely, as the law’s ultimate scope, requirements, and effective date remain in flux.
Colorado: Changes to Overtime Rules for Agricultural Workers
As of January 1, 2027, SB 121 requires all covered agricultural workers to be paid overtime for hours worked over 56 in a week. This represents a change from prior thresholds, under which overtime began after 48 hours for most farm work and 56 hours only during peak seasonal periods. Only employees who are engaged in the range production of livestock, decision-making managers, or family members of owners are exempt from this requirement. Employers that fail to comply may be subject to a 10% penalty increase, plus additional penalties of up to $40,000 for willful violations.
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