Summary of September 2025 Labor Law Updates for Denver, Colorado
Below is a roundup of significant developments in Colorado labor and employment law during September 2025. These updates are tailored for HR leaders, in-house counsel, and employees monitoring changes in workplace rights and employer obligations.
September 2025 was a significant month for Colorado labor law, especially given the By the Rockies decision narrowing the statute of limitations for wage claims—a move that will materially impact employer risk management going forward. Coupled with reforms under HB 25-1001, evolving regulatory rulemaking, and the delayed implementation of the AI Act, Colorado employers and practitioners should prioritize updating policies, risk assessments, and compliance frameworks. If you want help assessing your exposure, auditing existing practices, or preparing for upcoming rule changes, please feel free to reach out to the Denver team at HKM Employment Attorneys at https://hkm.com.
By the Rockies v. Perez — Colorado Supreme Court Ruling on Statute of Limitations for Wage Claims (Court Ruling)
Date: September 15, 2025
Summary:
In By the Rockies v. Perez, the Colorado Supreme Court resolved a long-running dispute over how far back employees can bring claims under Colorado’s Minimum Wage Act (MWA). The issue arose because the MWA does not itself specify a limitations period, and courts were split between applying Colorado’s general six-year limitations statute (C.R.S. § 13-80-103.5) or the two- (or three-) year period prescribed in the Colorado Wage Claim Act (C.R.S. § 8-4-122) for wage claims.
The Supreme Court held that wage claims under the MWA are subject to the more limited two-year statute for nonwillful violations, or three years for willful violations, in line with the Colorado Wage Claim Act. The Court emphasized that both statutes are part of a unified legal scheme for recovering unpaid wages, and that applying the six-year general rule would produce inconsistency and potentially encourage “statute shopping.”
Implications:
Employees now must file MWA claims more promptly; those with older claims beyond two (or three, if willful) years may be time-barred. Employers in Colorado gain increased certainty and narrower exposure to historical wage claims. This decision aligns Colorado more closely with the federal FLSA regime, which also uses two- and three-year limitations periods. HR and legal departments should review pending and potential wage claims and assess exposure under the new deadlines.
Colorado’s HB 25-1001 – Expanded Wage & Hour Reforms in Effect (Legislation / Regulatory Change)
Effective Date: August 6, 2025 (with relevance in September)
Summary:
Though effective in August, many of the impacts of HB 25-1001 were actively in play through September. The bill amends Colorado’s Wage Claim Act and related wage enforcement laws. Key changes include:
- Expanding the definition of “employer” to hold individuals owning or controlling 25% or more of a business personally liable for wage violations (unless they fully delegate control).
- Strengthening penalties for misclassification of workers as independent contractors, with fines rising and new enforcement mechanisms.
- Requiring more stringent scrutiny of wage deductions so that deductions cannot reduce a worker’s pay below Colorado or local minimum wage.
- Expanding the jurisdiction of the Colorado Department of Labor & Employment over wage claims up to $13,000, and mandating public disclosure of certain wage violations.
- Providing a safe harbor for employers who timely correct wage violations (i.e., pay owed wages) after a formal complaint is filed.
Implications:
Employers should audit classification practices and wage deduction policies to ensure compliance under the stricter standards. Because individual owners can now be liable, corporate risk evaluations should be revisited. Given the safe harbor clause, prompt remediation after a complaint may reduce exposure. Public posting of wage violations increases reputational risk for employers.
SB 25B-004 — Delay of Colorado’s AI Act Implementation (Legislation / Executive Action)
Enacted: August 28, 2025 (relevant during September)
Summary:
Colorado’s landmark AI regulation (SB 24-205) originally slated to take effect earlier has been delayed until June 30, 2026, by virtue of SB 25B-004.
This gives employers additional time to prepare systems, policies, and compliance frameworks related to use of AI in hiring, worker classification, performance management, and other employment contexts.
Implications:
Organizations should use the delay period to assess data practices, bias mitigation, recordkeeping, and auditing protocols for employment-related AI. Legal and compliance teams will need to monitor any further legislative changes or regulatory rulemaking in the interim. The postponement reduces immediate compliance burden while preserving anticipated future obligations.
Colorado Worker Compensation / DIME Program Rule Updates (Regulatory Change)
Effective Dates: Rules adopted earlier in 2025, but remain in force and relevant as of September
Summary:
In 2025, the Colorado Division of Workers’ Compensation (DOWC) adopted revised rules governing the Division Independent Medical Examination (DIME) program and related processes. Some of the new changes include:
- Stricter qualifying criteria for DIME panel members, including minimum hours of medical legal service, direct patient care, and relevant certifications.
- Requirement for a $1,000 deposit from requesting parties before scheduling a DIME appointment; remainder of payment to follow a prescribed fee schedule.
- Establishment of a Medical Records Unit to standardize and “clean” record packets, and procedural changes for submission and handling of medical records.
- Rule changes eliminating the requirement that a physician personally examine an injured worker in person within the first three visits, effective July 1, 2025.
Implications:
Parties (employers, insurers, injured workers) involved in workers’ compensation cases must adapt to new procedural and financial requirements for DIME evaluations. The Medical Records Unit may streamline or centralize certain aspects of record review and dissemination. Insurers and employers should revisit existing contracts or policies to ensure compliance with deposit and scheduling requirements.
Rulemaking & Proposed Rule Changes — Wage Protection, Notice, and Labor Rules (Regulatory / Administrative)
Active in September 2025
Summary:
The Colorado Department of Labor and Employment is undertaking fall 2025 rulemaking in areas directly affecting wage and employment law. Key proposals include:
- Adjustments to the PAYCALC Order, which governs annual wage compensation factors and minimum pay standards.
- Updates to Wage Protection Rules (WPR), aimed at clarifying employer duties concerning deductions, payday, and wage notice requirements.
- Proposed amendments to the state’s Whistleblower, Anti-Retaliation, Non-Interference, and Notice-Giving (WARNING) Rules.
- Ongoing work on rules implementing the Colorado Overtime Minimum Pay Standards (COMPS) Order and rules under the Youth Employment statute (CYEOA).
These rulemakings are open for public comment and reflection during fall 2025.
Implications:
Employers should monitor these proposed rules closely because once finalized, they will impose binding obligations. HR and compliance departments may want to submit feedback during comment periods, especially for rules affecting deductions, notice requirements, and whistleblower protections. Early alignment with draft proposed rules may ease transition once finalized.
Other Observations & Context
The Colorado Department of Labor & Employment’s Division of Workers’ Compensation did not hold a Case Law Update session in September 2025, citing a lack of eligible new cases.
In Colorado’s legislative activity earlier in 2025, SB 25-083 prohibits most non-compete and non-solicitation agreements for certain healthcare providers (physicians, midwives, advanced practice nurses, PAs, dentists) for employment contracts entered or renewed on or after August 6, 2025. This remains an important structural change for employment agreements and is active during September.
Conclusion: Looking Back on Colorado’s Labor Law Updates from September 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.
