January 13, 2026|Press
Legislative Look Ahead: Budget strain sets tone for 2026 session
By: Sarah Fuhrey Huber
“In addition to tax changes, employers are eyeing a shifting labor landscape. HB 5-1001, which took effect near the end of 2025 and amended the Colorado Wage Claim Act, increases penalties for misclassification, tightens limits on wage deductions and allows individuals who own or control at least 25% of a business to confront personal liability for certain violations.
‘Employers now face higher financial, reputational and operational risk for wage violations,’ explained Rob Hinckley and Sarah Andrzejczak, shareholders at Buchalter’s Denver office, by email.
The amended wage claim act also expands enforcement authority for the Department of Labor and Employment, which will be able to adjudicate wage claims up to $13,000 as of July 1, nearly doubling the previous cap.”
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