New Colorado Law Requires Colorado Labor for Public Works Projects

The Keep Jobs in Colorado Act became effective January 1, 2014. It requires at least 80 percent of the labor performed on public works projects financed in whole or part by funds of the state, counties, school districts, or municipalities to come from Colorado.

The law defines “Colorado labor” to mean “any person who is a resident of the state of Colorado, at the time of the public works project.” A resident is “a person who can provide a valid Colorado driver’s license, a valid Colorado state-issued photo identification, or documentation that he or she has resided in Colorado for the last thirty days.” The government entity financing the project can waive the requirement if compliance creates an undue burden or prevents the project from proceeding to completion. In that case, the government entity must post a notice giving the reason for the waiver.    

The law prohibits discrimination based on race, color, creed, sex, sexual orientation, marital status, national origin, ancestry, age, or religion against those who would perform the labor, “except when sex or age is a bona fide occupational qualification.”

The law also requires all contracts for public works financed by the covered entities to “contain provisions for the preference in employment of Colorado labor.” The Colorado Department of Labor enforces this law. Companies knowingly violating the law can incur penalties of $5,000 for a first violation, $10,000 for a second violation, and $25,000 for a third or subsequent violation. 

If you think this new law affects your company and you need more information, please contact one of our attorneys.