HB16-1154 Summary

• Clarifies that an employer-employee relationship exists only when an employer possesses authority to control an employee's terms and conditions of employment and actually exercises that authority directly.

• Establishes that franchisors are not considered employers of franchisees or their employees under Colorado law (referencing federal definitions in 16 CFR 436.1).

• Provides an exception allowing courts to find a franchisor is an employer if they exercise control over franchisees or their employees not customarily exercised by franchisors for protecting trademarks and brand.

• Applies the employer control requirement across multiple Colorado employment statutes including workers' compensation, unemployment insurance, and wage and hour laws.

• Takes effect 90 days after final adjournment of the general assembly (August 10, 2016), subject to referendum petition requirements.