CO HB1299

Modifies the standard for awarding attorney fees and costs to defendants in employment discrimination cases under Colorado Revised Statutes 24-34-405.

Expands grounds for fee awards to include claims that "lack substantial merit" because they are pursued in bad faith or when no reasonable person with knowledge of the facts would believe the claim is likely to succeed.

Requires courts to find that the plaintiff either unreasonably brought or continued to pursue an action or claim that lacked substantial merit before awarding costs and reasonable attorney fees to the prevailing defendant.

Replaces the previous standard of "frivolous, groundless, or vexatious" with a new standard focusing on whether the plaintiff knew or should have known the claim lacked substantial merit.

Takes effect 12:01 a.m. on August 10, 2016, unless a referendum petition is filed, in which case it requires voter approval at the November 2016 general election.