Summary: the Division wage claim investigation, appeals, and enforcement process

Division of Labor Standards and Statistics
707 17th Street, Denver, CO 80202 | 303-318-8441
www.ColoradoLaborLaw.gov | www.LeyesLaboralesDeColorado.gov

Interpretive Notice & Formal Opinion ("INFO") #2:
Summary: The Division Wage Claim Investigation, Appeals, and Enforcement Process

(1) Wage Claim Process [Details in INFO #2A]. The Division investigates complaints filed by individuals who allege that their employer(s) did not pay wages.

• Wage Complaint: Claimants file claims for unpaid wages using the Division's complaint form. There is no minimum claim amount; the most the Division can order is $7,500. After a claimant files their complaint, the Division may follow up with additional questions and requests for documents to understand the claim.
• Employer Response: Once there is evidence of a possible violation and an approximate amount of wages that may be owed, the Division sends the employer a Notice of Complaint (NOC) with an explanation of the allegations, the relevant law, and a copy of the wage complaint and supporting documents. The employer has 21 days after the NOC to respond to the allegations and provide evidence.
• Determination: Based on all information received, the Division issues (A) a Citation and Notice of Assessment finding violations of law, or (B) a Determination of Compliance if no violation is found.

(2) Penalties and Fines [Details in INFO #2B]. If an employer does not pay an employee all earned wages, on time, they may owe more than just the wages, and these amounts increase if not paid after 60 days:

• Penalties paid to the employee. If wages aren't paid within 14 days of a valid written demand, including an NOC, the employer may owe penalties. Penalties increase if the Division finds the employer's violation or failure to pay was willful (i.e., an employer knowingly or recklessly violates the law or fails to respond to a demand). Penalties may only be waived pursuant to C.R.S. § 8-4-109(3.5) if all conditions are met.
• Fines paid to the Division. The Division may order payment of fines for violating the law, including: (a) Failure to pay wages: up to $50 per day wages were not paid — and potentially waived for good-faith employer effort to comply, or increased if evidence shows bad-faith conduct. (b) Failure to respond to an NOC or other Division notice: $250 per non-response. (c) Failure to provide pay statements with an NOC response: $250 per month without a pay statement. (d) Failure to properly classify workers as employees: $5,000–$50,000 per violation, depending on the circumstances of each claim.
• The Division may also award claimants a recovery of (A) certain costs of their claim and (B) attorney fees if they won over $5,000 in wages and were represented by a lawyer.
• If an employer doesn't pay all ordered amounts by 60 days after a determination, the Division can file a certified copy of the determination in court, making the determination an official court judgment that allows all court order collection efforts. [Details in INFO #2D.]

(3) Appeals [Details in INFO #2C]. Parties may appeal Division wage determinations by filing an appeal (see the Division appeal form), received by the Division within 35 days, explaining why the decision was wrong.

• After receiving a timely appeal, the Division sends the parties an appeal record (all documents in the claim), with either a Notice of Hearing with the hearing date, time, participation instructions (phone or video method, how to present evidence, etc.), or an explanation of why a hearing is not necessary.
• Filing an appeal does not necessarily extend deadlines specified in the Notice of Assessment (for example, it will not extend the deadlines for an offer of reduced penalties and fine waiver). Parties should carefully review the Notice of Assessment for details about the deadlines.
• After a hearing, the Division issues a Hearing Officer decision. A party may ask for judicial review of the decision by filing in the appropriate Colorado district court within 35 days of the Hearing Officer decision.

For More Information: Visit the Division website, call 303-318-8441, or email [email protected].

INFOs are not binding law, but are the officially approved Division opinions and notices on how it applies and interprets various statutes and rules. Last updated Jan. 26, 2026.