With the 2026 Colorado legislative session now complete, we have a clearer view of which labor and employment bills advanced, or stalled, and which developments deserve employers’ attention. As in recent sessions, workplace legislation remained a major focus, with proposals touching on everything from collective bargaining and worker safety to wage-setting and reporting obligations.
In this update, we revisit the bills previously identified for Colorado employers to watch, along with several additional measures introduced during the session, and explain what matters most for employers.
Workers’ Compensation Insurance Coverage Verification (SB26-093)
Status: Signed into law.
Senate Bill 26-093 prohibits governmental entities from issuing or renewing certain building permits, construction permits for projects over $1 million, or contractor licenses without first verifying that the applicant, contractor, and all subcontractors either carry valid workers’ compensation coverage or have properly rejected it. Permit holders and contractors will also be responsible for ensuring subcontractor verification is complete before work begins.
Senate Bill 26-093 was signed into law by Governor Polis on May 29, 2026, and applies to conduct occurring on or after that date, including determinations of permit or license applications that were pending at the time of signing. Construction employers should audit their subcontractor management practices immediately to ensure compliance as violations could lead to permit or license suspension or revocation, and potential project delays.
Automated Decision-Making Technology SB26-189
Status: Signed into law.
Senate Bill 26-189 regulates the use of automated decision-making technology (ADMT) in consequential decisions, including certain employment decisions such as hiring, compensation, and termination.
Before using covered ADMT to materially influence a consequential decision, an employer must provide notice that the technology will be used and explain how the individual can obtain additional information. If the decision results in an adverse outcome, the employer must provide a plain-language explanation of the decision and ADMT’s role, describe how to request information about the system and data used, offer a process to correct inaccurate personal data, and provide an opportunity for meaningful human review where commercially reasonable.
The law takes effect January 1, 2027, and applies to consequential decisions made on or after that date. The law permits claims for discrimination arising from consequential decisions materially influenced by covered ADMT and makes clear that compliance does not excuse employers from other state or federal obligations. It also voids certain contractual indemnification provisions related to unlawful ADMT use. The Attorney General will enforce the law under the Colorado Consumer Protection Act, with a 60-day cure period for most first-time violations. Employers should evaluate their use of AI and algorithmic tools now and update their notice, review, and compliance processes before the law takes effect.
Disabilities Housing Protection (HB26-1045)
Status: Signed into law.
House Bill 26-1045 is primarily a housing measure, but it may be relevant to employers because it codifies definitions of “assistance animal” and “emotional support animal” in the Colorado Anti-Discrimination Act (CADA). Although these definitions apply specifically in the housing provisions, they may be instructive for future employment cases arising under CADA.
The bill defines an “assistance animal” as an animal that performs work or tasks, assists, or provides therapeutic emotional support to an individual with a disability. It defines an “emotional support animal” as an animal that provides solely emotional support to alleviate a symptom or effect of a disability.
The law will take effect August 12, 2026, unless a referendum petition is filed.
Surveillance Wage Setting (HB26-1210)
Status: Passed; awaiting Governor’s signature.
House Bill 26-1210 would bar employers from using automated systems to set individual wages based on surveillance data. The bill defines “surveillance data” broadly to include data gathered through observation, inference, or surveillance related to a worker’s personal characteristics, online behavior, or biometrics, preventing employers from relying on personal data such as financial circumstances or browsing habits in pay decisions.
Employers may still set individualized wages if any differences are based only on worker-specific data directly tied to seniority or job duties, including performance or new business, and if they clearly disclose before hiring and to affected workers what data is used and how the system applies it. The final bill also no longer allows cost-of-living data as a basis for individualized wages.
If enacted, the law would take effect on August 12, 2026, unless a referendum petition is filed. Violations would constitute deceptive trade practices under the Colorado Consumer Protection Act and could trigger civil penalties. Employers should proactively review their hiring and wage-setting practices to remove prohibited surveillance data inputs.
Disclosure of Demographic Workforce Data (HB26-1207)
Status: Passed; awaiting Governor’s signature.
House Bill 26-1207 would require private sector employers with 100 or more workers, who are already required to submit demographic workforce data to the federal government, to also report the data to the Colorado Secretary of State. The demographic data, referred to as “EEO-1 data,” includes information on employees’ race, ethnicity, gender, and job category.
If enacted, the reporting requirement would begin on July 1, 2027, and would apply even if the federal government discontinues its own EEO-1 reporting requirement. The bill specifically excludes government entities, school districts, and certain other public organizations from the new state-level reporting mandate.
Extreme Temperatures Worker Protections (HB26-1272)
Status: Passed, awaiting Governor’s signature.
House Bill 26-1272 would create new obligations for employers with workers exposed to extreme heat or cold. If enacted, the Colorado Department of Labor and Employment (CDLE) will begin collecting data on workplace temperature-related injuries and illnesses on January 1, 2027. By January 1, 2028, the Division of Labor Standards and Statistics will publish a model Temperature-Related Injury and Illness Prevention Plan (TRIIPP), which employers in covered industries must develop and submit to the Division by September 1, 2028. The bill would also require CDLE to develop temperature safety training standards that employers must deliver to affected workers.
Arbitration Reform (HB-1236)
Status: Passed; awaiting Governor’s signature.
House Bill 26-1236would make several significant changes to Colorado’s arbitration laws to strengthen protections for employees in arbitration proceedings.
The bill would prohibit any contract provision that requires an employee to pay arbitration fees and costs significantly higher than what they would pay to file a claim in state or federal court, allowing them to instead pursue their case in court. Additionally, the bill would bar any individual or arbitration organization from initiating, sponsoring, administering, or serving as an arbitrator that has rules, policies, or a demonstrated pattern of conduct that discriminates against certain parties or attorneys or that prevents certain parties or attorneys from asserting their rights or bringing a claim in arbitration. Finally, employers who fail to fully comply with the requirements of a recorded arbitration award within 120 days would be liable for double the total amount of the award.
If enacted, the law would take effect on August 12, 2026, and would apply to arbitration agreements entered into or renewed on or after that date. Employers that use mandatory arbitration agreements should proactively review their fee-shifting provisions and assess whether their chosen arbitration organizations meet the new eligibility standards.
Adjust Experience Modification in Workers’ Compensation (SB26-175)
Status: Passed; awaiting Governor’s signature.
Senate Bill 26-175 would revise how an employer’s experience modification factor (EMF)—a major driver of workers’ compensation premium costs—is calculated. An employer’s EMF can be inflated when a carrier reports an open claim to the rating bureau using paid amounts and reserves that exceed what is ultimately paid once the claim closes. To address that issue, the bill would require an insurance carrier to direct the employer’s authorized rating organization to adjust the EMF based on the lower amount paid on a closed claim.
To obtain an adjustment, employers must notify their carriers within a specific window—once the claim is reported to the rating bureau and thirty-one days after the employer’s rating effective date. The adjustment is available only if the actual paid amount would reduce the EMF by at least 0.05 from the previously released factor or would lower the EMF from above 1.0 to 1.0 or below. The authorized rating organization must then revise the EMF within 30 days, and the carrier must apply any resulting premium credit within the current policy period.
If enacted, the law would take effect on January 1, 2027, and would apply to claims closed on or after that date. Employers should work with their insurance producers to monitor closed claims and identify adjustment opportunities under the new process.
Protections for Worker Safety (HB26-1054)
Status: Failed to pass.
House Bill 26-1054 sought to align Colorado’s workplace health and safety laws with the federal Occupational Safety and Health Administration’s (OSHA’s) updated interpretation of the General Duty Clause, which requires employers to maintain workplaces free from recognized hazards. Most significantly for employers, the bill would have created a private right of action for aggrieved persons, exposing employers to penalties and potential work-prohibiting injunctions.
The bill faced opposition from the business community, in part due to concerns over duplicative enforcement and the breadth of the proposed private right of action. Because the bill failed to pass, OSHA remains the primary enforcement authority governing workplace safety obligations for Colorado employers.
Job Protection for General Assembly Members (SB26-087)
Status: Failed to pass.
Senate Bill 26-087 would have entitled employees who are also members of Colorado’s General Assembly to job-protected leave during a regular or extraordinary session. Currently, employers who have employees serving in the Colorado General Assembly do not have to take any new action and retain discretion in determining how to accommodate an employee’s legislative service.
Right to Be Out at Work (HB26-1319)
Status: Failed to pass.
House Bill 26-1319 would have expanded workplace protections for employees seeking to be open about their LGBTQ+ identity at work. The bill would have barred adverse action or retaliation based on an employee’s disclosure of their sexual orientation, gender identity, gender expression, or transgender, nonbinary, or transitioning status, and would have required employers to respect employees’ chosen names, pronouns, and titles in most workplace records and communications. It also would have addressed related workplace practices, including dress codes, restroom and changing-facility access, certain benefits, and, for public employers, voluntary transition-planning processes, training, and administrative enforcement.
Family Medical Leave Insurance Duration Extensions (SB26-127)
Status: Failed to pass.
Senate Bill 26-127 would have modestly expanded Colorado’s Family and Medical Leave Insurance (FAMLI) program by adding up to two additional weeks of paid leave for individuals whose family member died while they were using FAMLI leave to provide care.
The bill aimed to build upon existing provisions that passed in recent sessions such as Senate Bill 25-144, which provides an additional twelve weeks of paid FAMLI leave for parents of children receiving inpatient care in a neonatal intensive care unit (NICU).
Agricultural Employee Overtime Protections (SB26-081)
Status: Postponed indefinitely.
Senate Bill 26-081 would have applied more standard overtime rules to agricultural workers, requiring overtime pay for work exceeding 40 hours in a week, 12 hours in a day, or 12 consecutive hours regardless of shift timing.
In a related development, Governor Polis signed Senate Bill 26-121 into law earlier this month, which takes a narrower approach to overtime. Beginning January 1, 2027, certain agricultural employees will be entitled to overtime pay for work exceeding 56 hours in a workweek. The law exempts employees principally engaged in range production of livestock, qualifying “decision-making managers,” and family members of family-owned agricultural employers. The law also increases penalties for agricultural employers who repeatedly fail to pay wages or misclassify workers. Agricultural employers should update their payroll and scheduling practices accordingly.
Worker Protection Collective Bargaining (HB26-1005)
Status: Vetoed.
House Bill 26-1005 would have amended the Labor Peace Act to expand workers’ collective bargaining rights and eliminate the current requirement for a second election to negotiate a union security agreement clause as part of the collective bargaining process. Governor Polis vetoed a largely identical version of the bill in 2025.
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The 2026 legislative session produced a mixed outcome for Colorado employers. As this is Governor Polis’s final year in office, bills that failed this session could return for consideration in future legislative sessions. With several measures still awaiting the Governor’s action, employers should remain attentive and prepared to adjust to evolving requirements. We will continue to monitor developments and provide practical guidance to help employers keep their policies and practices compliant.
If you have questions about these developments, please contact Barbara Grandjean, Ashley Jordaan, Shawna Ruetz, Keith Ybanez, Owen Davis, Marina Fleming, Charlotte Rhoad, or your Husch Blackwell attorney.
Written with the assistance of Pema St.Germain, a summer associate in Husch Blackwell’s Denver office.