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  • On June 7th, 2023, Governor Jared Polis signed the Protecting Opportunities and Workers’ Rights (POWR) Act into law, bringing significant changes to Colorado’s employment discrimination legal landscape. The POWR Act expands the Colorado Anti-Discrimination Act (CADA), aiming to enhance protections for work and create a more inclusive and equitable work environment. Let’s explore the key provisions of the POWR Act and discuss its potential impact on Colorado employers and employees.

    Broadening The Definition Of Harassment

    One of the central changes introduced by the POWR Act is expanding the definition of harassment. The act replaces the previous definition, which required the creation of a hostile work environment based on specific protected characteristics, such as race, national origin, sex, sexual orientation, gender identity, gender expression, disability, age, or religion. The new definition established a lower threshold of proof, making it easier for employees to bring harassment claims.

    By broadening the definition of harassment, the POWR Act recognizes the importance of addressing all forms of workplace harassment, regardless of the specific protected characteristics involved. This change provides employees with greater legal recourse and promotes a safer and more respectful work environment.

    Changes To Affirmative Defenses 

    The POWR Act also imposes higher evidentiary standards on employers for affirmative defenses. Affirmative defenses are legal arguments that employers can raise to defend against certain discrimination claims. The act raises the bar for employers by requiring them to meet a more rigorous evidentiary standard when using these defenses. This change aims to ensure that legitimate claims of discrimination are not dismissed or undermined due to technicalities or weak defenses.

    Expanded Protections And Nondisclosure Agreements

    In addition to broadening the definition of harassment and strengthening affirmative defenses, the POWR Act introduces new protections and requirements. It adds “marital status” as a protected characteristic under the CADA, recognizing the importance of preventing discrimination based on marital status.

    The Colorado Civil Rights Commission has the authority to take legal action against employers who present employees with agreements that do not comply with the act’s requirements. In such cases, employees or prospective employees have the right to seek compensation for actual damages, along with reimbursement for costs and attorney’s fees incurred during the legal proceedings. Any employer found to have violated this provision is subject to liability for both actual damages and a penalty of $5,000 per violation. However, the penalty amount may be reduced if the employer can demonstrate good faith in their actions. On the other hand, if multiple agreements are found to violate the nondisclosure provisions, such evidence can be used to support an award of punitive damages. This provision aims to deter employers from repeatedly violating the act’s requirements and underscores the seriousness of nondisclosure agreement violations.

    Recordkeeping Obligations And Funding

    The POWR Act imposes an additional recordkeeping obligation on employers to promote accountability and transparency. This requirement aims to enhance the monitoring and reporting of discrimination incidents and provide accurate data to identify trends and areas of concern.

    To support the implementation of the POWR Act, the legislation appropriates approximately $1.2 million from the general fund for the fiscal year 2023-24. This funding will be crucial in ensuring that the necessary resources and infrastructure are in place to enforce the new provisions effectively.

    Implications For Employers

    The signing of the POWR Act places a greater responsibility on employers to ensure their workplaces are free from discrimination and bias. Employers will need to review and revise their policies and practices to align with the expanded protections and requirements under the legislation. Training programs and initiatives promoting diversity and inclusion will become even more crucial to foster a respectful and equitable work environment.

    It’s essential for employers to familiarize themselves with the provisions of the POWR Act to ensure compliance and avoid legal consequences. Seeking legal counsel or consulting human resources professionals can provide guidance on necessary adjustments and best practices for promoting equality and diversity within the workplace.

    Is Partnering With A PEO The Right Solution?

    Implementing the changes brought about by the POWR Act can be a complex task, especially for small business owners in Colorado who may have limited resources and expertise in employment law. In such cases, partnering with a professional employer organization (PEO) can be a game-changer. A PEO like GMS offers a comprehensive suite of HR services, including legal compliance support, policy development, training programs, and recordkeeping assistance.

    By leveraging the expertise of a PEO, small business owners can navigate the intricacies of the POWR Act with confidence, ensuring that their employment practices align with the expanded protected classes, harassment definitions, and affirmative defense requirements. We act as your knowledgeable guide, helping business owners stay updated on legislative changes, providing tailored solutions, and ultimately fostering a workplace environment that promotes diversity, equity, and inclusion. With the support of GMS, small businesses in Colorado can effectively implement the changes mandated by the POWR Act while focusing on their core operations and fostering a culture of fairness and respect. Contact our HR experts today to learn more.

  • As of January 1st, 2023, employees in California whose employers do not offer retirement plans now have access to an optional retirement savings plan. This plan will be a state-facilitated retirement savings program through the Colorado SecureSavings Program. The Colorado SecureSavings provides businesses with a convenient way to help their employees save for their future. If you’re a business owner who:

    • Has been in business for two or more years
    • Has five or more employees
    • Does not have a retirement savings plan in place

    You are now required by law to offer a retirement savings plan. Should you fail to provide your employees with one of these plans, you will face hefty fines levied by the state of Colorado.

    Who Qualifies For This Program?

    Any employee who is at least 18 years of age and has earned wages in Colorado for at least 180 days is eligible and automatically enrolled in the program. Employees will have 30 days following the enrollment date to opt-out or customize their contribution amounts, investment options, and beneficiaries. Suppose your employees choose not to opt out within this 30-day time frame. In that case, they will automatically have five percent of their compensation withheld on an after-tax basis and contributed to a Roth Individual Account (Roth IRA). A Roth IRA is an individual retirement account that offers tax-free growth and tax-free withdrawals in retirement. In addition, every January, contributions will automatically increase by one percent up to a maximum of eight percent unless the employee adjusts it.

    Should an employee not make an election on how their Roth IRA is to be invested, it will automatically be invested in the Capital Preservation Option. Capital preservation refers to an investment strategy where the main objective is to preserve capital and avoid losses in an investment portfolio. In utilizing this strategy, investments typically comprise the safest short-term investment products, including fixed deposits and bonds. It will then be transferred to the Target Retirement Date Option with a target date closest to the employee’s expected year of retirement.

    What You Should Know As A Business Owner In Colorado

    As with any law, as a business owner, you must know what every law entails and how it affects you, your business, and your employees. With this new law in Colorado, you will face hefty penalties if you don’t comply. It’s essential that you understand the following components of the law:

    • If you don’t sponsor a retirement savings plan for your employees, you must provide your payroll vendor’s name, payroll schedule, company bank information, contact information, and employee roster
    • Employees will then be automatically enrolled in the SecureSavings program
    • Employees hired after the date of registration must be enrolled in the SecureSavings program within 180 days of their hire date
    • You must update participating employees’ contribution rates within your payroll system
    • Contributions must begin with the payroll immediately after the 30-day opt-out period has passed
    • You must keep employee rosters and payroll contribution information updated
    • You are prohibited from setting up or managing employees’ accounts, managing investment options, or answering questions about the program
    • You are not permitted to provide any tax, legal, or other financial advice
    • Your employees will receive a Form 5498 directly from the trustee of the program no later than May 31st every year

    Save Yourself The Headache, Partner With GMS

    We understand that staying on top of, yet another law is a lot to take on. You wear many hats as a business owner and don’t have the time or money to manage every aspect of your business. When you hand off the administrative burdens of your business to GMS, you can finally focus on what you do best – growing your business. GMS helps with profit sharing and 401(k)s for small businesses. In serving as the plan’s co-sponsor, PEOs can leverage group buying power to reduce plan costs for small businesses and take on the fiduciary burden to ensure you remain compliant with your 401(k). We can help you set up fully customizable retirement savings plans that make your company more attractive to quality employees. When you partner with GMS, you can easily establish the following:

    • 401(k) eligibility requirements
    • Vesting schedules
    • Tax-deductible matching
    • Profit-sharing contributions

    Check this off your to-do list for the week. Contact us today to learn more.

  • Research conducted by the Colorado Department of Insurance (DOI) shows groups could potentially see a significant spike in premium costs for 2023. Those affected by higher prices include small businesses and individuals who receive health insurance outside of their employer’s health plan.

    After reviewing insurance company filings, they show:

    • An 11% increase for individuals
    • A 9% increase for businesses with fewer than 100 employees

    New Option For Coloradans In 2023

    With the expected increases in health insurance for 2023, there will be an additional option for Coloradans. The new option will offer plans at a lower cost than the market average. The deadline for individuals to weigh in on this is August 1, 2022.

    The DOI will examine the reasoning behind these increases after August 1st. Depending on the findings, the DOI will decide if health insurance increases are reasonable or if prices should be adjusted.

    As part of the new lower-cost Colorado option, the DOI has created a Standard Plan to allow consumers and businesses to easily compare plans and choose the best fit. In addition to free primary care and mental health visits, this new plan aims to reduce racial health disparities. However, this will only be available for Coloradans who buy their health insurance on the individual market and for small employers with two to 100 employees. For more information, click here.

    Lower Your Healthcare Premiums With GMS

    While Colorado is creating additional options to lower the cost of health insurance for individuals, GMS also provides health insurance to small businesses. Small businesses have access to the buying power of large corporations by partnering with GMS, which leads to a greater selection of affordable health insurance options. Through our buying power, we’re able to offer financial security, flexible benefit options, and an unprecedented customer service experience. Contact us about small company health insurance today.