At the Law Office of E.C. Lewis, we provide a wide range of legal services for businesses in Denver and throughout Colorado. In order to provide the best possible guidance to our clients, we’re constantly monitoring the latest laws and regulations impacting small businesses throughout the state. Below is a rundown of some recent changes to Colorado law that business owners should be aware of.
Businesses Cannot Ask for Any Age-Related Information from Job Applicants
In 2023, Colorado passed the Job Application Fairness Act. This law, which goes into effect on July 1, 2024, prohibits businesses from asking job applicants for the following age-related information on job applications:
Age
Date of birth
Dates of attendance/graduation from an educational institution
In addition, if employers ask for third-party materials such as certifications and transcripts, they must inform the applicant that they have the right to redact any information on these documents related to the prohibited age-related items listed above.
The purpose of this law is to prevent age discrimination during hiring, as approximately 40% of hiring managers have admitted to age bias when reviewing resumes. While this law will primarily benefit older applicants who are the most common victims of age discrimination, it will also likely benefit young applicants who are just starting out in their careers.
There are a few exceptions to this law. Employers can verify an applicant’s age in the following situations:
Jobs which have age requirements imposed by federal, state or local law
Jobs that have age-related qualifications related to public or occupational safety
However, for these exceptions, businesses cannot ask for the applicant’s specific age; they can only ask the applicant to verify that they meet the requirements associated with the job.
Businesses will receive a warning for the first violation. Penalties for a second violation can be as much as $1,000, and subsequent violations face a fine of up to $2,500. Business owners should review their job application forms now to ensure they are in compliance with the new law before it goes into effect this July.
FAMLI Program Is Now in Effect
The Colorado Paid Family and Medical Leave Insurance (FAMLI) program began providing benefits to employees beginning January 1, 2024. This program ensures all Colorado workers have access to paid leave to care for themselves and their family members during certain life circumstances, including:
The birth of a child
A serious health condition
Funding for the FAMLI program started January 1, 2023, and both employers and employees should be contributing premiums for the program during each pay period. It’s important for businesses to be aware that this program is now in full swing, and employees have the ability to take paid leave for qualifying events. Eligible employees can receive up to 12 weeks of paid leave, and individuals who experience pregnancy or childbirth complications can receive an additional four weeks.
Restaurants Can No Longer Use Polystyrene Containers
Large Colorado retailers can no longer distribute plastic checkout bags
Large Colorado retailers must continue charging a minimum $0.10 fee per paper checkout bag
Restaurants and other retail food establishments are prohibited from distributing polystyrene foam containers (commonly referred to as Styrofoam® containers)
Moving forward, restaurants must use eco-friendly options such as paper or biodegradable products. However, restaurants are exempt from the plastic bag ban and the bag fee since single-use plastic bags are considered important for food safety.
Businesses are allowed to use up any plastic bags and polystyrene containers purchased before January 1, 2024, but once this supply runs out, they must make a full transition to more eco-friendly products. There is a warning for the first violation, a $500 fine for a second violation, and up to $1,000 fine for subsequent violations.
Colorado Pay Transparency Amendments Are in Effect
New amendments to Colorado’s Equal Pay for Equal Work Act took effect on January 1, 2024. These new regulations place the following requirements on business owners:
Employers must place application deadlines on external job postings and internal promotion notices
Employers must notify any Colorado employee who will regularly work with a new hire or promotion within 30 days of the hiring/promotion decision
Employers must inform employees in roles with a defined, objective career progression of the requirements for advancement and what the pay increase will be if they are promoted
In addition, businesses with open job positions that are primarily performed in Colorado, or that can be performed in Colorado (such as remote positions), must include the following information in the job posting:
Hourly rate or salary compensation range
General description of bonuses, commissions or other forms of additional compensation associated with the job
General description of all employment benefits being offered, including healthcare benefits, retirement benefits and paid days off
Application deadline
How to apply for the job
Language Access in Insurance Documents Law Now in Effect
A new law went into effect on January 1, 2024 requiring insurance companies to provide certified translations of all documents. These translations must be available in every language they advertise in.
As part of this law, insurance companies must provide translations of the following items in every language they use as part of their marketing campaigns:
The application or interface the applicant uses to apply for, purchase or receive a quote for a policy
Any written coverage forms, including rejections or exclusions
The insurance policy, declarations page, explanations of benefits and other policy- or coverage-related documents
Therefore, insurance companies must now be careful about marketing in other languages. If they don’t have the resources to comply with these translation requirements, they will not be allowed to market in these languages.
Colorado Minimum Wage Increase for 2024
As of January 1, 2024, the Colorado has implemented the following minimum wage increases:
Minimum wage is now $14.42 per hour
For tipped workers, the minimum wage is now $11.40 per hour
It is also important to note that Denver has its own minimum wage which is higher than Colorado’s for individuals who perform services in Denver proper:
Minimum wage is now $18.29 per hour in Denver proper
For tipped workers, the minimum wage is now $15.27 per hour in Denver proper
Elizabeth Lewis Can Ensure You’re Compliant with New Colorado Laws
Keeping up with the many changes to Colorado laws can be dizzying for business owners. However, failure to comply with these laws can have devastating consequences for your business. Elizbeth Lewis can help make sure your business remains compliant with all changes to state laws that impact your operations.
The Law Office of E.C. Lewis provides comprehensive legal services for businesses. Elizabeth has been helping small and medium sized businesses in Denver and throughout Colorado since 2007. She understands the complex laws impacting businesses in a variety of industries, and she can provide the legal guidance necessary to help your business thrive.
A new federal law called the Corporate Transparency Act went into effect on January 1, 2024. This law includes new reporting requirements for small businesses. If you have an LLC, corporation or another business entity, you will probably be required to file information with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) bureau by December 31, 2024 about all individuals who have ownership in the company and/or who exercise control in the company as determined by FinCEN. Different timeframes apply to companies created after January 1, 2024.
There are significant civil and criminal fines and penalties for failing to file a report if your business is required to do so. These include possible fines of up to $500 a day and/or jail time.
Below is some important information that all business owners need to know about the Corporate Transparency Act. If you have any questions about how this law impacts your business, the Law Office of E.C. Lewis is here to help. Elizabeth Lewis is a small business lawyer with over 15 years of experience assisting small and medium sized businesses in Denver and throughout Colorado, and she can help you navigate the requirements of this new law.
What Is the Corporate Transparency Act?
The Corporate Transparency Act is a law enacted to crack down on illegal activities performed by businesses, including tax fraud, money laundering and the financing of terrorism. To accomplish this goal, the law requires businesses which meet established criteria to submit a Beneficial Ownership Information (BOI) Report to the FinCEN. These reports will allow the government to collect ownership information for a wide range of businesses operating in the United States.
The purpose of the Corporate Transparency Act is to prevent individuals with malicious intent from hiding or benefiting from the ownership of their U.S. businesses in an attempt to commit illegal activities. Congress has identified these common practices as a significant threat to our economic integrity and national security.
Who Is Considered a Beneficial Owner of a Company?
Under the Corporate Transparency Act, individuals who directly or indirectly have a significant ownership stake in a company are considered to be a beneficial owner. Individuals who meet the criteria:
Have a major influence on the company’s decisions or operations, even if the person does not have ownership in the company
Own at least 25% of the company (i.e. through shares, membership interests, or other means)
Have a similar level of control over the company’s equity
Who Needs to File a BOI Report?
Corporations, LLCs and other entities established by filing a document with a Secretary of State or similar office under the law of a state or Indian tribe must file a BOI report unless the business qualifies for an exemption. In addition, certain businesses established in foreign countries that are registered to conduct business in the United States are required to file a BOI.
What Are the BOI Report Filing Exemptions?
There are 23 types of entities that are exempt from the reporting requirements. FinCEN’s Small Entity Compliance Guide includes checklists for each of the 23 exemptions that may help determine whether your company qualifies for an exemption. You may visit www.fincen.gov/boi to access the guide and check if your company is exempt.
Please note, most small businesses ARE NOT exempt and will need to file.
What Information Must Be Included in Your BOI Report?
The information you must include in the BOI report depends on the date your company was created. Companies created prior to January 1, 2024 must provide information about the company and its beneficial owners. Companies created after January 1, 2024 must provide these same details and also provide information about their company applicants.
A company applicant refers to the person who files the document creating the domestic reporting company and the person primarily responsible for directing or controlling the filing if multiple people are involved in this process.
Company information that must be reported includes:
Full legal name
Any trademark or “doing business as” (DBA) names
Street address of the principal place of business
Jurisdiction of formation
Taxpayer ID number
Foreign companies will need to provide the address information for their U.S. operational location.
Information regarding beneficial owners and company applicants (when applicable) includes:
Full legal name
Date of birth
Current residential street address
Unique identifying number and issuing jurisdiction from a current U.S. passport, state or local ID document, driver’s license, or a foreign passport (if the individual doesn’t have any of the other documents)
Image of the document chosen for the requirement above (passport, state ID, etc.)
Updating Your BOI Report to Reflect Changes in the Reported Information
You will need to file an updated report within 30 calendar days if any changes in the information reported about the company or beneficial owners occur. This includes:
Changes associated with any beneficial owners, including the required information associated with existing beneficial owners and the addition or subtraction of beneficial owners to the company
Changes to the reporting company which result in the company becoming eligible for an exemption
How Do I File a BOI Report?
If you are required to file a report, you may be do so electronically through FinCEN’s website. Please note, if you use a search engine to find the site to report information to, you may be directed to a privately owned site that either:
Requires payment to help you complete the registration, and/or
Is not legitimate and is being used to steal your identity
Just like when dealing with the IRS or the state, itis essential that you go to the government website provided.
Please note that once you have registered, there are requirements that you keep the information current. These requirements can be found on www.fincen.gov.
Beware of Scams
If you receive any solicitations by email, US mail, or phone from someone other than your CPA or attorney regarding the Corporate Transparency Act reporting requirements, please do not follow any instructions on these solicitations. Many of them are not legitimate.
With this new law, there most likely will be an uptick in the number of these solicitations that you will receive. If you have any questions about whether something you get in the mail is legitimate (whether about the new FinCEN reporting requirements, labor law posters, corporate seals, or anything else), you should always consult with an experienced Denver business law attorney such as Elizabeth Lewis prior to paying any third party for unsolicited services or providing any personal or business-related information.
Elizabeth Lewis Can Help Ensure You’re Compliant with Colorado Laws Impacting Businesses
In addition to the new BOI reporting requirements, there have been a lot of changes to Colorado law in the past few years. If you have not had your contracts, employment agreements, employment handbooks or company documents (bylaws, operating agreements, etc.) reviewed recently, it may be time for a checkup. Elizabeth Lewis can help make sure your business remains compliant with all the latest changes to state laws.
The Law Office of E.C. Lewis provides a wide range of legal services for businesses, and we can help set your business up for success. We can assist with the following services:
Business organization documents such as bylaws, operating agreements, buy-sell agreements, and partnership agreements
Leases for both commercial tenants and commercial and residential landlords
Under C.R.S. 19-3-304, there are numerous people that are required by law to report child abuse and neglect based on their profession. These individuals are commonly known as mandatory reporters. This includes many individuals which common-sense would say interact with children and know about abusive situations such as:
medical doctors in almost all medical professions including MDs, ODs, chiropractors, and optometrists;
dentists and orthodontists;
nurses and others involved in the treatment of patients;
most individuals that work with children such as daycare workers, teachers, school officers, and social workers;
religious personnel, including Christian Science practitioners;
therapists; and,
peace officers, parole officers, and firefighters.
In addition to the above, there are a lot of others that many times may not be so obvious. This includes some film processors, dietitians, and individuals employed with an athletic program. For some, this was the result of widespread abuse being learned out (such as with the Penn State child abuse scandal) after the fact or in others because new technology was created that resulted in new areas where abuse could be discovered.
Training
While many individuals that are employed through governmental agencies receive training on mandatory reporting and their obligations as mandatory reporters, for smaller businesses, training may be lacking and, in some cases, individuals may not even know they are mandatory reporters.
When to Report
For individuals who are mandatory reporters, if a mandatory reporter knows or suspects that a child has been abused or neglected (including reasonably suspecting that abuse or neglect is occurring based on what they observe then the mandatory reporter is required to report this to the proper authorities. In most cases, even if the mandatory reporter learns about this in what otherwise would be a privileged communication, the mandatory reporter is still required to report it.
There are special circumstances that apply in some cases if the abuse is learned after the person suspected of being abused has turned 18 since the abuse happened, the individual learns of the abuse through protected communication, or the person is no longer in a position of trust in regard to children under the age of 18.
For More Information
If your Colorado small business has employees that fall under any category that is required to be a mandatory reporter, as a business owner you should have rules and procedures in place to train your employees what to look out for and how to report it. If you need help with any policies and procedures for your Denver small business, including those for mandatory reporters, please contact me, your Denver small business lawyer, today at 720-258-6647 or schedule online today!
Contact Us Today
Law Office of E.C. Lewis, P.C. Your Denver Business Attorney
LICENSED IN COLORADO AND NORTH CAROLINA
Mailing Address:
501 S. Cherry Street, Suite 1100 Denver, CO 80246 720-258-6647 Elizabeth.Lewis@eclewis.com
Non-compete covenants have generally been used by employers to restrict the ability of employees to compete with the employing company both during and after employment. Some estimates state that up to 18% of employees are currently bound by a non-compete agreement with over 38% agreeing to one at some point in their previous employment history. In Colorado, prior to the passage of HB 22-1317, covenants not to compete were typically void except in some cases. HB 22-1317 has made covenants not to compete less enforceable than they previously were and now codifies non-compete covenant law into statute.
When are Non-Competes Valid Now?
Previously, non-competes were generally void except to protect trade secrets, in the case of selling a company, and other narrowly tailored circumstances. Under the new non-compete statute, the law now says non-competes are void except:
1. If the covenant not to compete with the company’s business is made with highly compensated individual (equal or greater to average compensation for the role), is for the protection of a trade secret, and is not overly broad.
2. If the covenant not to compete involves the solicitation of the company’s customers, and not a general non-compete with the company, the covenant has to be made with someone that earns 60% or more the average compensation for the role, is to protect trade secrets, and no broader than necessary.
What about Training?
In the case where an employer pays for an employee’s training as part of employment and the employer requires repayment upon termination, the employee can only be required to pay back training if it isn’t specific for the job and the repayment occurs within two years of the training. Further, the repayment must be prorated based on the two years so if someone quits one year after the training, they would be required only to repay up to fifty percent of the cost of the training. Lastly, there are separate rules if the cost is deemed to be part of a scholarships for an apprentice.
Other Non-Compete Issues
As allowed prior to HB 22-1317, confidentiality requirements are still allowed if they are for information that is not generally known. However, if the disclosure is allowed by law (for example under whistle-blower protections), then the confidentiality requirement may be void. Non-competes involving an owner who is selling their business to another party are generally still valid.
Employees can request a copy of any non-compete or non-solicit that they have with the company at least once per year. The company will be required to give the employee a copy of the document upon request.
New Liability for Employers
The biggest change in the non-compete realm deals with penalties for non-competes that are not enforceable. The new statute has language that if a non-compete violates any of the above, the employee can receive damages of $5,000.00 under the statute in addition to injective relief and any actual damages. The employee can also receive attorney fees and costs as well.
As the new rules apply to any employee who is based in Colorado at time of termination, it is important that all Colorado-based companies and those companies that have employees in Colorado make sure they are complying with the new regulations. If there are any questions what your company needs to do, please contact me, your Denver small business attorney, Elizabeth Lewis at 720-258-6647 or schedule online today!
Contact Us Today
Law Office of E.C. Lewis, P.C. Your Denver Business Attorney
LICENSED IN COLORADO AND NORTH CAROLINA
Mailing Address:
501 S. Cherry Street, Suite 1100 Denver, CO 80246 720-258-6647 Elizabeth.Lewis@eclewis.com
Starting in January 2023, employees and some employers are required to participate in the Colorado FAMLI program. Passed in November of 2020, the new Family and Medical Leave Insurance program is a state-run program that provides family and medical lease to Colorado employees who have paid into the system, much like unemployment insurance.
Overseen by the Colorado Department of Labor and Employment, the FAMLI program gives employees up to twelve weeks of paid time off to care for themselves or family members that are experiencing a medical or family situation that is covered under the program. Some examples of instances which are covered under the FAMLI program are the need for time off for an extended illness, to care for a newly adopted child, or to prepare for a military deployment. There are other circumstances that will also qualify for paid time off so employees and employers will need to evaluate each set of circumstances to determine eligibility.
The program is to be paid for by payments made into the system by employees and in most cases, contributions from employers as well. For the first two years of the program, a fee is paid on the 0.9% of wages. After two years, the amount may go up but is capped at 1.2% of wages; however, this amount may be changed depending on the needs of the program and whether a change is approved by the legislature. The fee is totally covered equally by the employee and the employer.
All employees are required to pay into the system unless they are federal employees, local government employees of an entity that has opted out of the program, their employer has agreed to pay the employee’s share into the program on behalf of the employee, or the employee is a “self-employed” individual as defined under Colorado state law. Self-employed individuals may opt into the system but are required to make payments for three years once they have opted into the system to ensure that they do not opt-in only to receive benefits and then opt-out after receiving them.
Some employers are also required to pay on behalf of their employees into the system. For employers with more than 10 employees that are not exempt as listed above, employers will be required to pay into the FAMLI program unless they have an internal program that meets the qualifications as required by CDLE. For employers with less than 10 employees, only the employee portion is required. At this time, the number of employees that a company employs does include employees who work both in Colorado and in other locations, but payment into the system is only required for Colorado based employees.
It will remain to be seen how this will affect Colorado small business owners. As a small business attorney, I see many instances where small businesses in places throughout the state (whether they are Denver-based small businesses or from smaller communities like Breckenridge-based small businesses or Greeley-based small businesses) are already struggling with the cost of employees. For those based in the larger areas, the prevailing (or in some cases, mandated) hourly rate of employees may start as high as $17.29 an hour, not counting any required additional payments of federal taxes, unemployment insurance, and workers’ compensation. For small businesses, they will now be required to keep open positions for anyone that takes leave under the FAMLI program and, if they choose to offer health insurance, will be required to continue to make payments for the health insurance at the same level they did while the person was employed. So, on top of missing an employee and either having to find someone (who may need training) for the period while the person is gone, a small business may also be required to pay health insurance and, for many small business owners, this may create a situation where they can no longer hire individuals when their profits were slim to begin with. For employees, it does help (especially those that work at larger companies that may be able to go the three months without the person’s help) give some assurance that they can take time off without missing as much of a paycheck (as the FAMLI program may not pay out at 100% of the employee’s pay as if they were working). However, for the small businesses on the margins, it may create a situation where they no longer hire or are much pickier about those that they do. If you are a small business, I’d love to hear your thoughts about the FAMLI program below!
If you need help figuring out how the FAMLI program fits into your Colorado small business, contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Small Business Lawyer. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com
Contact Us Today
Law Office of E.C. Lewis, P.C. Your Denver Business Attorney
LICENSED IN COLORADO AND NORTH CAROLINA
Mailing Address:
501 S. Cherry Street, Suite 1100 Denver, CO 80246 720-258-6647 Elizabeth.Lewis@eclewis.com
Do you use contracts with evergreen clauses? (Evergreen clauses being those where a contract automatically renews if neither party cancels it within a certain amount of time before the end of the current term.) If so, changes came into play at the beginning of this year that may have a big impact on your agreement and the terms that you have to have in it.
Evergreen contracts can be a win-win for businesses and those that they contract with. When someone needs ongoing services or products, not having to renegotiate a contract each year, or even worse having services or products cut off because a new contract wasn’t signed due to forgetfulness or other reasons, can cause chaos for a business. Having an agreement continue can ensure continuity for the business of things such as CO2 supplies for restaurants, security guards for jewelry stores, and IT services for legal practices.
However, it can also create situations where businesses can suffer. A business may not want to renew its copier services for another two years because it has gone mostly digital and paying a monthly charge for paper copies is an expense that is no longer needed. A medical practice may have hired an office manager and no longer needs to outsource some services. Recently, with COVID, we have seen many businesses go full remote so services such as janitor services, renting of office furniture, and other services and supplies for an in-person office may no longer be needed. For these businesses, a contract that automatically renews may have only downsides and not an upside.
Starting in 2022, a new law in Colorado makes auto-renewing contracts subject to specific provisions to ensure that consumers know their rights regarding such terms. Anyone using an evergreen clause must have a “clear and conspicuous disclosure” of what the terms and conditions are regarding auto-renewal. For instance, this clause may be in bold type and a bigger font than the rest of the agreement. Or it may be something that customers get disclosures in the agreement but also get a separate sheet that states that the agreement will auto-renew and the terms of such auto-renewal. All of this must be done before the contract is signed to make sure all individuals signing the agreement know the terms of the evergreen provisions upfront.
In addition to knowing what the terms are beforehand, each person signing the agreement with evergreen clauses must know their rights and have the ability to easily terminate the agreement prior to it auto-renewing. This may include the ability to terminate through a website, by email, or other means that are easily accessible to the average individual. In addition, at least once a year, the company must notify the customer that the agreement automatically renews and give the option of terminating the agreement.
If you are going to include auto-renewal provisions in any contracts that your clients sign, you must make sure that going forward you comply with the new Colorado laws. Please note, these provisions do not apply to certain industries such as public utilizes and, in some cases, insurance agents. If you are in a highly regulated industry, it is best to check with an attorney to see whether these rules apply to your industry. (For example, consumers may not be happy if their car insurance is cancelled without notice because they didn’t sign to allow automatic renewals and businesses may be very unhappy if their workers are left in the dark because the lights aren’t on.
For further information about auto-renewal provisions and the new law, you can check out the law at https://leg.colorado.gov/bills/hb21-1239. You can also always call me, your Denver Small Business Attorney, at 720-258-6647 or schedule an appointment online at www.eclewis.com/schedule and we can make sure your marketing materials and contracts comply with the new law!
If there are any questions, please contact me, your Denver Small Business lawyer, at 720-258-6647.
Contact Us Today
Law Office of E.C. Lewis, P.C. Your Denver Business Attorney
LICENSED IN COLORADO AND NORTH CAROLINA
Mailing Address:
501 S. Cherry Street, Suite 1100 Denver, CO 80246 720-258-6647 Elizabeth.Lewis@eclewis.com