On January 9th, 2023, Denver passed the Civil Wage Theft Ordinance.  The law has been in effect for over one year, and the city and county of Denver recently released a summary of the results so far. The law makes gives Denver one of the strongest in the U.S., similar in structure to the Private Attorney General Act in California for wage theft. 

Denver recovered over $2,000,000 in wages for 3,570 workers, through the Denver Labor department.  The law also empowers employees to hire attorneys as the law allows for a private right of action.  The current minimum wage in Denver as of 2024 is $18.29 per hour, with overtime due after 40 hours per week (federal law) or 12 hours per day (Colorado law). 

A private right of action means an employee suffering a wage violation can contact private attorneys to represent them in a lawsuit to recover the wages.  The same penalties apply as when the government is enforcing the labor laws, allowing recover of lost wages, penalties, attorneys fees, costs, and up to 300% the owed amount in treble damages as a deterrent for committing wage theft. 

Denver’s Civil Wage Theft Ordinance Penalties 

The Denver Civil Wage Theft Ordinance allows for: 

General Penalties 

• $1,000 fine: For failing to submit or providing false payroll records, or violating other unspecified obligations. 
• $25,000 fine per worker: For failing to pay full wages, considering aggravating and mitigating factors. 
• $5,000 fine: For employer retaliation against employees exercising their rights. 

Retaliation Penalty 

• $5,000 fine for employer retaliation, potentially requiring rehire of the employee. 

Compensation 

• Payment of withheld wages plus 12% annual interest. 
• Treble damages (three times the amount of unpaid wages). 
• Attorney fees and costs. 
• Reinstatement of employment, if applicable. 

Up-the-Chain Liability 

• Extends liability to businesses benefiting indirectly from labor, including general contractors and clients of staffing agencies. 

Private Right of Action 

Workers have the right to bring a civil action within three years of the alleged violation. If they prevail, they are entitled to: 

1. Payment of unlawfully withheld wages. 
2. Interest on unpaid wages at 12% per annum. 
3. A penalty of $100 per day per worker for each day the violation continued. 
4. Liquidated damages up to three times the unpaid wages. 
5. Reinstatement of employment and/or other injunctive relief. 
6. Reasonable attorney fees and costs. 

The auditor’s office can still conduct concurrent investigations and enforcement actions regardless of private lawsuits. 

Denver Auditor Results – 2023 

Denver reported that cases investigated across various high-risk industries including nail salons, home health care, construction sites, and staffing agencies.  Figures from their report: 

Number of Claims and Cases 

• Total workers helped in 2023: 3,570 
• Total restitution recovered: $2,043,086 
• Total cases closed with restitution: 586 
• Total payroll records audited: 96,000+ 

Common Types of Wage Theft 

Minimum wage violations 

• Overtime violations 
• Prevailing wage violations 
• Paid sick and safe leave violations 
• Rest break violations 

Financial Impact 

• Average restitution per worker in 2023: $572.29 
• Total penalties issued: $31,232.58 

Class Action Wage Theft Law Firm 

Schneider Wallace is a national law firm that, by partnering with local firms, can assist clients in any jurisdiction in the country. Contact us to schedule an appointment with our experienced employment class action litigation lawyers. 

If you believe you are not being paid for all of the time you have worked, or are not being paid the overtime due to you, we invite you to schedule a consultation with an employment law attorney at our offices. Schneider Wallace Cottrell Konecky LLP is a national law firm that represents employees in a wide range of employment law cases, including class action lawsuits involving the failure to pay wages, overtime pay and commissions. Contact us at 1-800-689-0024 or info@schneiderwallace.com.