Construction Wage Claim Legislation Passes in Colorado

Bill 24-1008—titled Wage Claims Construction Industry Contractors—is awaiting action by Gov. Jared Polis after passing the Democrat-controlled Colorado legislature on May 7. The bill makes the prime contractor on a project responsible for unpaid wages by any other company on the project, with interest and penalties for nonpayment.

Representatives from the construction industry, including the Associated General Contractors, Associated Builders and Contractors, the American Institute of Architects, Colorado Contractors Association, the Hispanic Contractors of Colorado and the Airport Minority Advisory Council opposed the bill.

These and other groups are mounting a grassroots push to encourage Gov. Polis to veto the bill. In a statement, AGC’s Michael Gifford emphasized that the association “does not condone or support any wage theft. Employees should always be paid properly. But much of the wage theft occurs when a construction company goes out of business mid-project, and that is usually an unavoidable situation, not intentional nonpayment of wages.”

If the bill is signed, specialty contractors will likely be required to comply with a more complicated payroll verification system and provide wage or other bonds that could increase project costs an estimated 3%, Gifford says.

“For small businesses with limited resources, it could result in loss of project opportunities,” adds Ale Spray, CEO and president at HCC.