Summary of July 2025 Labor Law Updates for Denver, Colorado
Here’s your roundup of the most important labor and employment law developments affecting Denver, Colorado during July 2025—tailored for employees, HR professionals, and compliance leaders. Brought to you by HKM Employment Attorneys’ Denver team.
July 2025 saw several impactful developments in Colorado labor law—from heightened wage-and-hour enforcement to Supreme Court discrimination standards and evolving leave and covenant requirements. Employers and HR leaders should act now to ensure compliance and prepare for upcoming changes. For tailored legal guidance or help updating your policies, contact HKM Employment Attorneys at hkm.com.
Legislative Council Staff: Summary of 2025 Labor & Employment Legislation — Legislation Review
Date: July 2, 2025
Summary: The Legislative Council Staff published a summary of labor and employment-related measures from the 2025 session, covering wage and hour laws, vocational rehabilitation, and workforce development initiatives.
Implications: Offers broad insight into policy directions; professional readers should reference this for context but seek full bill texts for specifics.
Enforcement of Wage and Hour Laws (HB 25-1001) — Legislation
Date: Passed during 2025 session; highlighted mid-July report (July 25, 2025)
Summary: House Bill 25‑1001 strengthens Colorado’s wage-and-hour rules by expanding worker protections and increasing penalties for employer noncompliance. These changes are scheduled to take effect on August 6, 2025.
Implications: Employers must update compliance strategies now to align policies, payroll practices, and enforcement responses before the August enforcement date. HR teams and payroll departments, in particular, must prepare for these heightened obligations.
Supreme Court’s Title VII Ruling & Colorado Employer Impact
Date: Supreme Court decision on June 5, 2025; commentary published July 2025
Summary: In Ames v. Ohio Department of Youth Services, the U.S. Supreme Court unanimously rejected the “background circumstances” test that had imposed a higher proof standard for majority-group plaintiffs (e.g., heterosexual or white individuals) alleging discrimination under Title VII. This decision applies equally across all protected classes.
Implications: Colorado employers—under the jurisdiction of the Tenth Circuit—should recognize that discrimination claims from majority-group employees will now follow the same standards as minority claims. Employers should reassess their diversity training, legal defenses, and internal investigations accordingly.
State HR Advisory: FAMLI and Non-Compete Policy Updates
Date: July 16, 2025
Summary: Colorado employers were reminded to update their policies in light of recent developments:
Align with current Healthy Families and Workplaces Act (HFWA) and Family and Medical Leave Insurance (FAMLI) requirements.
Prepare for NICU leave expansion and associated premium changes scheduled for 2026.
Immediately remove banned restrictive covenant language from agreements effective August 6, 2025, and ensure patient communication clauses are appropriately included.
Implications: HR practitioners should immediately audit and revise relevant policies and contracts. Although NICU leave changes are coming later, restrictive covenant updates must be completed urgently.
Conclusion: Looking Back on Colorado’s Labor Law Updates from July 2025
Colorado’s shifting landscape in employment law—from wrongful termination and wage-and-hour violations to reasonable accommodations and ethics investigations—underscores the importance of having local counsel. At HKM Employment Attorneys in Denver, our Colorado-based advocates have delivered comprehensive support, fighting for compensation under the Wage Act, negotiating employment contracts, and conducting employer investigations when needed . Our team’s depth of experience and no-win, no-fee commitment ensure you’re not navigating this alone. When court decisions resonate with your experience, contact our Denver office to learn how we can help protect your rights and pursue justice in your case.
