Colorado Employment Law Update – May 2018

Colorado

Living Organ Donor Support Act Tax Credit

On May 29, 2018, Colorado Governor John Hickenlooper signed legislation (H.B. 1202) creating an income tax credit for employers who provide their employees paid leave to make an organ donation.

Beginning January 1, 2020, but before January 1, 2025, eligible employers will be allowed an income tax credit that is equal to 35 percent of the employer’s expenses incurred:

  • When paying an employee during his or her leave of absence period; and
  • For the cost of temporary replacement help, if any, during the leave.

Employers may not claim a tax credit for this leave if the employee is compensated $80,000 or more during the income tax year. The tax credit is not refundable, but unused credits may be carried forward up to five years.

Upon request as part of an audit, a taxpayer must provide the Colorado Department of Revenue with documentation from the employee’s medical provider that verifies the organ donation. If unable to provide this documentation, the taxpayer is ineligible for the credit.

Read CO H.B. 1202

Security Breach of Personal Identifying Information

On May 29, 2018, Colorado Governor John Hickenlooper signed legislation (H.B. 1128) strengthening protections for consumer data privacy. The law requires covered and governmental entities in Colorado that maintain paper or electronic documents with personal identifying information (PII) to develop and maintain a written policy for the destruction and proper disposal of those documents. Entities that maintain, own, or license PII, including those that use a nonaffiliated third party as a service provider, must implement and maintain reasonable security procedures for the PII.

The notification laws governing disclosure of unauthorized acquisitions of unencrypted and encrypted computerized data were also expanded to specify who must be notified following such unauthorized acquisition and what must be included in such notification.

The law is effective September 1, 2018.

Read CO H.B. 1128

Working Families College Savings Act

On May 29, 2018, Colorado Governor John Hickenlooper signed legislation (H.B. 1217) creating a temporary income tax credit for employers that make contributions to a “529 qualified state tuition program account” owned by their employees, thereby enacting the Working Families College Savings Act.

The law applies to tax years beginning on or after January 1, 2019, but prior to January 1, 2022.

Read CO H.B. 1217

Exemption from Workers’ Compensation for Out-of-State Employers

On April 30, 2018, Colorado Governor John Hickenlooper signed legislation (H.B. 1308) establishing an exemption from the Workers’ Compensation Act of Colorado for an out-of-state employer whose employees are working in Colorado on a temporary basis as long as both of the following apply:

  • The out-of-state employer furnishes coverage under the workers’ compensation laws of the state in which the employee is regularly employed, which coverage applies to the employee while working temporarily in Colorado.
  • The out-of-state employer’s home state is contiguous to Colorado, recognizes the exemption, and provides a reciprocal exemption for Colorado employees temporarily working in that state.

The home state’s workers’ compensation laws are the sole remedy for an out-of-state worker who is injured while working temporarily in Colorado.

The law became effective April 30, 2018.

Read CO H.B. 1308