Colorado Employment Law Update – August 2016
Minimum Wage Ballot Initiative
On August 16, 2016, Colorado Secretary of State Wayne Williams confirmed that Initiative #101 will be on the November election ballot. The initiative would raise the minimum hourly wage to $9.30 on January 1, 2017, then increase it annually by $ 0.90 each January 1 until it reaches $12 in January 2020. Thereafter, the minimum wage would be adjusted annually for cost-of-living increases measured by the Consumer Price Index used for Colorado. Under the initiative, no more than $3.02 an hour in tip income would be permitted to offset the minimum wage of an employee who regularly receives tips.
Unemployment Insurance – Employment Classification
On June 10, 2016, Colorado Governor John Hickenlooper signed legislation (S.B. 179) to improve the processes used by the Department of Labor and Employment for determining the employment classification of an individual for purposes of unemployment insurance eligibility. The law requires the department to:
- Develop guidance for employers regarding evidence that an individual is engaged in an independent trade, occupation, profession, or business.
- Clarify the process by which an employer or individual may submit further information in response to a determination by the department and prior to an appeal.
- Establish an individual policy to serve as a resource for employers by providing guidance on the proper classification of workers, audit findings, and options for curing or appealing an audit.
- Establish internal methods to improve consistency among auditors.
- Establish an independent review of a portion of audit and appeal results at least twice a year to monitor trends and make improvements to the audit process.
The law goes into effect on August 10, 2016.
Read CO S.B. 179