Denver City Council voted 12 – 0 to enact 22-1614, legislation that will ensure Denver workers are paid what they are legally owed. The policy creates an administrative pathway for workers to recover stolen wages by filing a complaint with Denver’s auditor. Wage theft occurs whenever a worker is paid less than what they are owed. It includes minimum wage violations, meal break violations, forcing someone to work “off the clock,” or paying less than the agreed-upon wage.
With its passage, Denver workers became the most protected in the nation because all workers will have both administrative and civil recourse for alleged wage theft. No other municipality provides such broad protection without a limiting factor like type of work performed or type of pay.
The legislation was sponsored by Council members Torres, Sawyer, Gilmore, and CdeBaca and is the result of years of engagement with a labor coalition comprised of IUPAT, Carpenters Local 555, Towards Justice, Colorado Jobs with Justice, LiUNA, SEIU, and the Colorado Building & Construction Trades Council.
“I would like to sincerely thank the important and vital Denver workers and union members who champi- oned legislation to combat wage theft in our city,” said Councilwoman Stacie Gilmore. “Your experiences, persistence and values have supported the creation of a bill that will for the first time in our city’s history comprehensively protect workers from wage theft.”
The policy allows workers to file a complaint directly with the auditor’s office when their wages are stolen. The auditor investigates and orders payment of owed wages, plus interest. There are additional penalties available for willful violations or uncooperative employers.
Councilwoman Amanda Sawyer remarked, “We were shocked to learn what a widespread problem wage theft is in Denver, and across Colorado. It seems like such a simple concept to ensure that our workers are paid for the work they have done,” Sawyer said, “but it is much more complicated than it appears. This legislation has bridged important gaps in worker protections while also finding a good balance for the businesses that benefit from that work.”
“Wage theft constitutes more dollars of theft than any other type of theft (e.g., burglary, larceny, auto theft), with $728 million in legally earned wages being stolen from Colorado workers each year. Those most affected are our low wage, immigrant, and female workers. This ordinance reflects our local commitment to doing everything possible to guarantee workers get paid AND stopping wage theft altogether with meaningful penalties,” said Councilwoman Candi CdeBaca. “We value our workers in this City and hope to prevent and remedy harm done to the hard-working people in our communities.”
While there are criminal and state-level protections against wage theft, this legislation fills an important gap by holding all employers who benefit from stolen wages accountable. Under the new policy, if a worker’s direct employer has disappeared or is insolvent, the auditor may pursue payment from the entity that subcontracted with that direct employer. This policy not only ensures that workers get paid, it also encourages industry self-policing and protects high-road employers from unfair competition.
Denver already has robust administrative protections for minimum wage enforcement–workers with a valid complaint receive their missing wages within an average of 60 days, which is the fastest turnaround time in the nation. This legislation builds on that successful model by giving the auditor a variety of “carrots” and “sticks” to bring employers to the table in a productive way. It was crafted to punish bad actors, not those who make honest mistakes.
The law will go into effect as soon as Mayor Hancock signs it. Then, the auditor’s office will engage the public in a rulemaking process to determine how the policy will work on the ground.
Council President Jamie Torres shared, “When you remember that nearly half of Americans are just one paycheck away from poverty, it becomes clear that we cannot keep families housed if our workers are having their wages stolen. I’m so proud of the work this group has done to give Denver workers the widest protection of any municipality in the United States.”
Source: Councilwoman Jamie Torres Dist. 3
