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COLORADO DIVISION OF LABOR
633 17th Street, Suite 200Denver, CO 80202
www.colorado.gov/cdle/labor
SSTATE LABOR, EMPLOYMENT, AND TATE LABOR, EMPLOYMENT, AND IMMIGRATION LAWS UPDATEIMMIGRATION LAWS UPDATE
February 25, 2010
Employment and Training
Labor Market Information
Unemployment Insurance
Workforce Centers
Claims Services
Dispute Resolution
Employer Services
Medical Policy Research
Medical Service Delivery
Special Funds
Technical Operations
Wage and Hour
Youth Employment
Labor Relations
Immigration
Boiler Inspection
Carnivals
Explosives
Oil Inspection
Public Safety Office
Public School Construction
Executive Director
Division ofEmployment and Training
Division ofWorkers’ Compensation Division of Labor Division of
Oil & Public Safety
COLORADO DEPARTMENT OF LABOR &
EMPLOYMENT
Presentation Content
1. Workplace Compliance Trends and Litigation Directions
2. State Wage and Hour Hot Topics
a. Minimum Wage
b. Wage Order Number 26
c. Wage Act
3. State Immigration-Employment Laws
a. Employment Verification Law
b. E-Verify, Public Contracts for Services Law
Litigation TrendsSource: Seyfarth Shaw 2010
Litigation Report1. Downturn is likely to fuel more lawsuits...Former
employees are a fertile source of suits and complaints to government agencies.
2. Wage and hour litigation / FLSA lawsuits outpace all other types of workplace class actions.
3. Top-ten wage and hour private settlements totaled over $360 million in 2010, $100 million greater than in 2009.
4. US DOL hired 250+ new W & H investigators in the U.S.
5. US DOL Denver announced yesterday a new enforcement initiative for restaurants and construction industries. (Denver Post)
DeductionsFinal Payment
Pay PeriodsPaydays
Timely Payment
Minimum Wage
Meal PeriodsRest Periods
Overtime
Colorado Wage Act
Applies to most employees in Colorado
Colorado Minimum Wage Order Number 26
Applies to four major industries:Retail and Service
Commercial Support ServiceFood and BeverageHealth and Medical
Colorado ConstitutionArticle XVIII, Section 15
Minimum Wage Applies to:Employees covered by federal law
Employees covered by WO 25
Colorado Wage Law Coverage
WagesTipped
Employees
COLORADO MINIMUM WAGECOLORADO MINIMUM WAGE
In 2006, voters passed an amendment to the Colorado Constitution:
Colorado Constitution, Article XVIII, Section 15
Effective January 1, 2007, Colorado's minimum wage shall be increased to $6.85 per hour and shall be adjusted annually for inflation, as measured by the Consumer Price Index used for Colorado. This minimum wage shall be paid to employees who receive the state or federal minimum wage. No more than $3.02 per hour in tip income may be used to offset the minimum wage of employees who regularly receive tips.
In 2006, voters passed an amendment to the Colorado Constitution:
Colorado Constitution, Article XVIII, Section 15
Effective January 1, 2007, Colorado's minimum wage shall be increased to $6.85 per hour and shall be adjusted annually for inflation, as measured by the Consumer Price Index used for Colorado. This minimum wage shall be paid to employees who receive the state or federal minimum wage. No more than $3.02 per hour in tip income may be used to offset the minimum wage of employees who regularly receive tips.
COLORADO MINIMUM WAGECOLORADO MINIMUM WAGE
Date MW Tipped MW
January 1, 2010 $7.24 $4.22
January 1, 2009 $7.28 $4.26
January 1, 2008 $7.02 $4.00
January 1, 2007 $6.85 $3.83
August 8, 1998 $5.15 $2.13
Date MW Tipped MW
January 1, 2010 $7.24 $4.22
January 1, 2009 $7.28 $4.26
January 1, 2008 $7.02 $4.00
January 1, 2007 $6.85 $3.83
August 8, 1998 $5.15 $2.13
COLORADO MINIMUM WAGECOLORADO MINIMUM WAGE
Minimum Wage, January 1, 2010
• Current Colorado minimum wage: $7.24 and tipped employee minimum wage: $4.22
• MW adjustment based on BLS data
– DBG CPI-U Compares first half of 2008 to first half 2009
– Anticipated release of BLS data – August 2010
• Federal MW is $7.25, and federal tipped MW: $2.13
• CO MW lawsuit dismissed in Denver District Court
Minimum Wage, January 1, 2010
• Current Colorado minimum wage: $7.24 and tipped employee minimum wage: $4.22
• MW adjustment based on BLS data
– DBG CPI-U Compares first half of 2008 to first half 2009
– Anticipated release of BLS data – August 2010
• Federal MW is $7.25, and federal tipped MW: $2.13
• CO MW lawsuit dismissed in Denver District Court
MINIMUM WAGE ORDER MINIMUM WAGE ORDER NUMBER 26: COVERAGENUMBER 26: COVERAGE
• Retail and Service
• Commercial Support Service
• Food and Beverage
• Health and Medical
• Retail and Service
• Commercial Support Service
• Food and Beverage
• Health and Medical
OVERTIME PAYOVERTIME PAY
Overtime: Wage Order 26
Time and one-half the regular rate of pay for
any work in excess of:
• 40 hours per workweek – like FLSA
• 12 hours per workday (differs from FLSA)
• 12 consecutive hours without regard to starting and ending time (differs from FLSA)
Overtime: Wage Order 26
Time and one-half the regular rate of pay for
any work in excess of:
• 40 hours per workweek – like FLSA
• 12 hours per workday (differs from FLSA)
• 12 consecutive hours without regard to starting and ending time (differs from FLSA)
MEAL AND REST PERIODSMEAL AND REST PERIODS
Meal and Rest Periods: Wage Order 26
Non-exempt employee is entitled to:
• At least a ½ hour “duty-free” meal period if the scheduled work shift exceeds 5 consecutive hours.
• Compensated 10 minute rest period in the middle of each four hour work period.
Meal and Rest Periods: Wage Order 26
Non-exempt employee is entitled to:
• At least a ½ hour “duty-free” meal period if the scheduled work shift exceeds 5 consecutive hours.
• Compensated 10 minute rest period in the middle of each four hour work period.
TIP CREDITTIP CREDIT
Tip Credit: Wage Order 26
• Tip Credit - $3.02 credit against minimum wage for tipped employees
• Tipped employee must customarily receive more than $30.00 a month in tips
Nullification of Tip Credit:
• Employer required sharing of tips with those who do not customarily receive tips
• Employer deducts credit card processing fees
Tip Credit: Wage Order 26
• Tip Credit - $3.02 credit against minimum wage for tipped employees
• Tipped employee must customarily receive more than $30.00 a month in tips
Nullification of Tip Credit:
• Employer required sharing of tips with those who do not customarily receive tips
• Employer deducts credit card processing fees
WAGE ACTWAGE ACT
Wage Act
Wages defined: All earned, vested, and determinable amounts for labor or service performed by employees regardless of method of calculation.
•Hourly
•Salary
•Piece-rate
•Commission
•Bonus (non-discretionary)
•Vacation (upon separation – earned in accordance with an agreement)
•Severance and Sick Pay– not defined as wages
Wage Act
Wages defined: All earned, vested, and determinable amounts for labor or service performed by employees regardless of method of calculation.
•Hourly
•Salary
•Piece-rate
•Commission
•Bonus (non-discretionary)
•Vacation (upon separation – earned in accordance with an agreement)
•Severance and Sick Pay– not defined as wages
DEDUCTIONSDEDUCTIONS
Permissible Deductions: Wage Act
• Those required by local, state, or federal law
• Per written agreement between the employer and employee for loans, pay advances, goods or services, and equipment or property
• Deductions necessary to cover the replacement cost of a shortage due to theft by an employee
• Deduction authorized by the employee and that can be revoked. (insurance benefits, savings plans)
• Amount of money or the value of property that the employee failed to properly pay or return to the employer (termination only)
Permissible Deductions: Wage Act
• Those required by local, state, or federal law
• Per written agreement between the employer and employee for loans, pay advances, goods or services, and equipment or property
• Deductions necessary to cover the replacement cost of a shortage due to theft by an employee
• Deduction authorized by the employee and that can be revoked. (insurance benefits, savings plans)
• Amount of money or the value of property that the employee failed to properly pay or return to the employer (termination only)
FINAL PAYFINAL PAY
Final Pay: Wage Act
• Employee Quits or Resigns
– Wages due next regularly scheduled payday
• Terminated Employee
– Payroll onsite and open – wages due immediately
– Payroll onsite and closed – wages due 6 hours after beginning of employer’s accounting unit’s next regular workday
– Payroll offsite – wages due no later than 24 hours after the start of employer’s accounting unit’s next regular workday
Final Pay: Wage Act
• Employee Quits or Resigns
– Wages due next regularly scheduled payday
• Terminated Employee
– Payroll onsite and open – wages due immediately
– Payroll onsite and closed – wages due 6 hours after beginning of employer’s accounting unit’s next regular workday
– Payroll offsite – wages due no later than 24 hours after the start of employer’s accounting unit’s next regular workday
FINAL PAYFINAL PAY
Penalties Upon Demand: Wage Act
• Upon demand, an employer has 14-days to pay amounts believed in good faith are due to employee
• Increased penalties for failure to pay within 14 days of receipt of demand; Greater of:
• Average daily earnings up to 10 days, OR
• 125% of wages due up to $7,500, plus
• 50% of wages due over $7,500
Penalties Upon Demand: Wage Act
• Upon demand, an employer has 14-days to pay amounts believed in good faith are due to employee
• Increased penalties for failure to pay within 14 days of receipt of demand; Greater of:
• Average daily earnings up to 10 days, OR
• 125% of wages due up to $7,500, plus
• 50% of wages due over $7,500
TIMELY PAYMENT & PAY TIMELY PAYMENT & PAY PERIODSPERIODS
Timely Payment and Pay Periods: Wage Act
• An employer must pay on regularly scheduled paydays
• Paydays cannot exceed 10 days following the close of a pay period
• Pay periods cannot exceed a calendar month or 30 days
Timely Payment and Pay Periods: Wage Act
• An employer must pay on regularly scheduled paydays
• Paydays cannot exceed 10 days following the close of a pay period
• Pay periods cannot exceed a calendar month or 30 days
WAGE ACT CHANGESWAGE ACT CHANGES
Changes to the Wage Act in 2009
Additional fees for bounced paychecks: Three times the face amount of the check but not less than one hundred dollars AND actual damages caused by the nonpayment, including associated late fees.
Paycards as a permissible form of payment (2008).
Changes to the Wage Act in 2010, proposed legislation: None (at present).
Changes to the Wage Act in 2009
Additional fees for bounced paychecks: Three times the face amount of the check but not less than one hundred dollars AND actual damages caused by the nonpayment, including associated late fees.
Paycards as a permissible form of payment (2008).
Changes to the Wage Act in 2010, proposed legislation: None (at present).
DIVISION ENFORCEMENTDIVISION ENFORCEMENT
• 7,000+ annual complaints and written inquiries
• Mediation process averages 35-45 days
• Division is not an advocate for either party
• Cannot guarantee payment or resolution
• Cannot provide legal advice
• Division recovers over $1.3 million per year
• 7,000+ annual complaints and written inquiries
• Mediation process averages 35-45 days
• Division is not an advocate for either party
• Cannot guarantee payment or resolution
• Cannot provide legal advice
• Division recovers over $1.3 million per year
ASSSORTED ENFORCEMENTASSSORTED ENFORCEMENT
• Employee cannot waive rights to earned wages
• Division involvement
• Criminal prosecution
• Civil action
• Federal law / US DOL
• Employee cannot waive rights to earned wages
• Division involvement
• Criminal prosecution
• Civil action
• Federal law / US DOL
www.colorado.gov/cdle/employmenteligibility
COLORADO EMPLOYMENTCOLORADO EMPLOYMENTVERIFICATION LAWVERIFICATION LAW
HB 06S-1017 (8-2-122, C.R.S)HB 06S-1017 (8-2-122, C.R.S)
IMMIGRATION LAWSIMMIGRATION LAWS
Then: Immigrant Hiring Law Perplexing, Denver Post, 12/17/06
Immigration dilemma, Rocky Mountain News, 12/12/06
New law a head scratcher, Rocky Mountain News, 12/1/06
Swift raids – 1,300 or 10% of entire workforce - nationwide
Iowa meatpacking raids – 300 from town of 2,500, Postville, Iowa
Possible federal preemption
Now: Continuing education and enforcement
Then: Immigrant Hiring Law Perplexing, Denver Post, 12/17/06
Immigration dilemma, Rocky Mountain News, 12/12/06
New law a head scratcher, Rocky Mountain News, 12/1/06
Swift raids – 1,300 or 10% of entire workforce - nationwide
Iowa meatpacking raids – 300 from town of 2,500, Postville, Iowa
Possible federal preemption
Now: Continuing education and enforcement
You may recall the backdrop from 2007…
Employers include both public and private employers.
The law applies to Colorado employees hired on and after January 1, 2007.
Within 20 days after hiring a new employee, the employer must have completed the employment eligibility verification process.
Employers include both public and private employers.
The law applies to Colorado employees hired on and after January 1, 2007.
Within 20 days after hiring a new employee, the employer must have completed the employment eligibility verification process.
8-2-122, C.R.S. COVERAGE8-2-122, C.R.S. COVERAGE
EMPLOYMENT VERIFICATION EMPLOYMENT VERIFICATION LAWLAW
8-2-122, C.R.S.8-2-122, C.R.S.Each employer (includes private and public) in
Colorado shall complete an affirmation within 20 days after hiring a new employee.
The employer must keep for the term of employment of each employee:
– a written or electronic copy of the affirmation
– Written or electronic copies of employee’s identity documents required by 8 U.S.C. sec 1324 a (Form I-9)
Each employer (includes private and public) in Colorado shall complete an affirmation within 20 days after hiring a new employee.
The employer must keep for the term of employment of each employee:
– a written or electronic copy of the affirmation
– Written or electronic copies of employee’s identity documents required by 8 U.S.C. sec 1324 a (Form I-9)
8-2-122, C.R.S. AFFIRMATION8-2-122, C.R.S. AFFIRMATION
Has examined the new employee’s legal work status
Has retained file copies of documents required by 8 U.S.C. Sec. 1324a (copies of I-9 identity documents presented by the employee)
Has not altered or falsified the employee’s identification documents
Has not knowingly hired an unauthorized alien
Has examined the new employee’s legal work status
Has retained file copies of documents required by 8 U.S.C. Sec. 1324a (copies of I-9 identity documents presented by the employee)
Has not altered or falsified the employee’s identification documents
Has not knowingly hired an unauthorized alien
Employer must affirm within 20 days after hiring a new employee that the employer:
Available on Division website: colorado.gov/cdle/employmenteligibility
Any substantially Any substantially similar affirmation similar affirmation may be used.may be used.
AFFIRMATION SAMPLEAFFIRMATION SAMPLE
8-2-122, C.R.S. DOCUMENT 8-2-122, C.R.S. DOCUMENT RETENTIONRETENTION
Employer shall keep a written or electronic copy of:
The signed affirmation
Copies of the employee’s identity documents produced to comply with I-9
Retain for each employee’s term of employment
Employer shall keep a written or electronic copy of:
The signed affirmation
Copies of the employee’s identity documents produced to comply with I-9
Retain for each employee’s term of employment
8-2-122, C.R.S. 8-2-122, C.R.S. ENFORCEMENTENFORCEMENT
When the Department has reason to believe that an employer has not complied, the Director shall request the employer to submit the documentation
The Division conducts random audits; commenced in October 2007
The Department accepts written complaints and shall have the discretion to determine which complaints, if any, are to be investigated
When the Department has reason to believe that an employer has not complied, the Director shall request the employer to submit the documentation
The Division conducts random audits; commenced in October 2007
The Department accepts written complaints and shall have the discretion to determine which complaints, if any, are to be investigated
8-2-122, C.R.S. 8-2-122, C.R.S. ENFORCEMENTENFORCEMENT
2,000+ total audits to-date
1,700 randomly generated
Approximately 20 commenced each week/1,000 per year anticipated
Notified by letter
Must submit requested written materials
New Rules effective October 30, 2009
2,000+ total audits to-date
1,700 randomly generated
Approximately 20 commenced each week/1,000 per year anticipated
Notified by letter
Must submit requested written materials
New Rules effective October 30, 2009
8-2-122 RANGE OF 8-2-122 RANGE OF RESPONSESRESPONSES
No new employees post-1/1/07 All documents in order Business closed Pending reply No affirmations Affirmations back-dated No copies of identity documents Identity documents do not reasonably appear to
be genuine No affirmations or copies of identity documents No reply to multiple requests Reckless Disregard: no documentation, false or
fraudulent documentation
No new employees post-1/1/07 All documents in order Business closed Pending reply No affirmations Affirmations back-dated No copies of identity documents Identity documents do not reasonably appear to
be genuine No affirmations or copies of identity documents No reply to multiple requests Reckless Disregard: no documentation, false or
fraudulent documentation
An employer who,(1) with reckless disregard, fails to submit the
required documentation(2) with reckless disregard, submits false or
fraudulent documentation
May be subject to a fine • Up to $5,000 for the first offense• Up to $25,000 for the second and
subsequent offenses
8-2-122, C.R.S. PENALTIES8-2-122, C.R.S. PENALTIES
8-2-122, C.R.S. PENALTIES8-2-122, C.R.S. PENALTIES
• Division has levied significant fines against numerous employers
• Fines due to:1. No response2. Reckless disregard; failure to provide
information3. Repeated non-compliance
E-VerifyE-Verify
Free, voluntary except for some states, situations
Mandatory for: federal contractors and Colorado public contracts for services
Internet-based
Newly hired only, no later than 3 days post-start date
I-9 information submitted through SSA and DHS databases
97% are shown to be work-eligible
TNC must contact SSA or DHS
Must use for all new hires (cannot be selective)
E-VerifyE-Verify
2010 Proposed Legislation: SB 10-033
• Repeals the current employment verification law
• Requires all private sector employers to use E-Verify
• CO Attorney General can fine for noncompliance
• Suspension of business license possible
Tancredo Proposed Initiative for November Election
• E-Verify requirement for all CO employers
• 76,047 signatures to get on ballot
U.S. Supreme Court and Preemption
E-Verify Statistics from USCIS: E-Verify Statistics from USCIS: 1/23/101/23/10
Federal Total E-Verify enrollment
nationally: 183,000 employer companies, 3.9 million queries
Colorado Colorado E-Verify enrollment: 5,690
Colorado employer companies (5,200 in 2009; 3,800 in 2008; 2,500 in 2007)
Number of queries in Colorado: 82,000 so far for FY 2010 (federal FY of Oct 1-Sept 30)
E-Verify Statistics
• Work authorization effective 7/9/2009
• 96.9% work authorized instantly or within 24 hours
• .3% tentative non-confirmation ultimately resolved as work authorized
• 2.8% not authorized
Source: www.uscis.gov
E-Verify Federal DirectionsE-Verify Federal Directions
DHS Homeland Security Secretary, 2010:
“E-Verify is absolutely where we are going in terms of incentivizing employers and making sure we are using a legal work force”
Mandatory use for all employers in the U.S. is considered a likely component of comprehensive immigration reform.
RESOURCESRESOURCES
Division Homepage: colorado.gov/cdle/labor
Wage and Hour: colorado.gov/cdle/wagelaw
Minimum Wage: colorado.gov/cdle/minimumwage
Youth Law: colorado.gov/cdle/youthlaw
Union Law: colorado.gov/cdle/laborrelations
Immigration: colorado.gov/cdle/employmenteligibility
Division e-mail: [email protected]
Division phone: 303-318-8441