Colorado construction contractors could face civil liability for wage theft under a bill previewed by Democratic lawmakers Friday.
Details of the proposal are still being finalized ahead of the legislative session that begins Wednesday. House Majority Leader Monica Duran, a Wheat Ridge Democrat, said it is one of the bills she plans to introduce on the first day, and classified it as part of the party’s priority of economic justice.
Colorado sees an estimated $728 million in wage theft annually, according to a 2022 Colorado Fiscal Institute report cited by Duran. For comparison, the U.S. Chamber of Commerce estimates there was about $642 million worth of goods stolen via retail theft in Colorado in 2021.
“It is an injustice,” Rep. Meg Froelich, an Englewood Democrat, said. “It is stolen rent money. It’s money that would have gone to the kitchen table, health care, back-to-school supplies. So it’s critical for our working families, who we are relying on so desperately to build what we need in Colorado.”
Several Colorado construction workers spoke at the proposal’s unveiling of losing tens of thousands of dollars in unpaid wages, with no recourse. The proposed bill seeks to rectify that by holding general contractors ultimately liable for wage theft claims against subcontractors, though exact details are still being worked out. It has similar aims as an ordinance passed by the Denver City Council last year, sponsors said.
Duran called the focus on the construction industry a first step in a broader fight against wage theft. While there are many good actors in the construction business, about one in 10 wage theft claims stem from that industry, she said. Many construction workers are also Hispanic or Latino — a demographic that’s disproportionately affected by wage theft, she said.
“We’re taking one step here, and the step is with construction because that’s where we’re hearing the most from right now,” Duran said. “And hopefully we can build upon this in future sessions.”
Michael Gifford, advocacy director for the Associated General Contractors, was at the proposal’s unveiling and said it is important workers get their proper pay. But he warned of downstream effects on small construction businesses if they need to post unaffordable liability bonds with project managers skittish about bearing wage theft responsibility for all their subcontractors. It could price out many of the businesses the state needs to meet growth and electrification goals.
Gifford said his group would advocate for more funding for the Colorado Department of Labor and Employment to investigate wage claims and, if his industry is specifically targeted, try to steer legislation to put the onus on companies that directly hire subcontractors — not the general contractor that might have several levels of subcontractors between them and workers with wage theft claims.
“If you’re going to solve that problem in Colorado, you’re not going to solve it by picking on us, because 89% (of complaints are) other industries,” Gifford said.
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