HB13-1227: Income Protection Act

• Creates the crime of wage theft for employers who knowingly fail to pay wages or falsely deny compensation amounts due, with penalties ranging from Class 2 misdemeanor (under $500) to Class 3 felony ($20,000 or more), with each employee per calendar month constituting a separate violation

• Establishes an administrative procedure allowing the Division of Labor to investigate wage complaints up to $7,500, issue citations and notices of assessments, and provide appeal rights to a hearing officer and Colorado Court of Appeals

• Expands employer liability by including officers, owners, and agents who actively assert substantial control over management or financial affairs, and establishes joint and several liability for all employers

• Requires employers to maintain payroll records for 3 years, mail wage checks within 60 days if unable to deliver them, and establishes reduced penalties (50%) if employers make good faith payment tenders within 14 days of written demand

• Directs fines collected to a new Wage Theft Enforcement Fund and awards employees reasonable attorney fees and court costs in wage payment actions, with penalties reduced by 50% for good faith wage tenders by employers