Effective immediately, Colorado has enacted House Bill 26-1283, creating new protections against the confiscation or retention of workers’ government-issued identification documents. The law imposes new restrictions on employers, establishes notice and recordkeeping requirements related to Form I-9 verification, and creates both criminal and civil liability for violations.
Employers May Not Confiscate or Retain Identification Documents
The law generally prohibits an employer or an employer’s agent from:
- Demanding that an employee or applicant surrender a government-issued identification document;
- Confiscating an identification document;
- Retaining an identification document; or
- Otherwise requiring an individual to give up possession of an identification document.
The protections apply broadly to:
- Employees;
- Job applicants;
- Migrant workers;
- Seasonal employees; and
- Individuals seeking to perform work in any capacity for the employer.
Limited Exception for Form I-9 Verification
The law permits employers to temporarily retain a government-issued identification document for employment eligibility verification purposes.
However, the retention is strictly limited:
- The document may be retained only to complete Form I-9 verification and make a copy if needed; and
- The employer may not retain the document for more than 10 hours.
This provision is particularly important for HR personnel and onboarding teams responsible for employment verification.
New Notice and Recordkeeping Requirements
When using an identification document for employment eligibility verification, employers must provide written notice informing the individual that Colorado law prohibits employers from confiscating or retaining government-issued identification documents except as permitted by law.
The notice must be provided:
- In writing; and
- In the individual’s primary language, if known.
Employers must also maintain records of:
- The notice; and
- The individual’s acknowledgment of receiving the notice.
Criminal and Civil Liability for Violations
The law significantly increases the consequences for employers that improperly retain identification documents.
A person who knowingly violates the statute may commit criminal possession of an identification document, a class 2 misdemeanor.
In addition, an individual harmed by unlawful possession of an identification document may bring a civil action to:
- Recover damages; and
- Seek a court order requiring the immediate return of the document.
Expanded Bias-Motivated Crime Provisions
The law also amends Colorado’s bias-motivated crime statute.
A person may commit a class 1 misdemeanor if, with the intent to intimidate or harass based on a protected characteristic, the person:
- Unlawfully retains another individual’s identification document; or
- Provides or threatens to provide an individual’s identification document to federal immigration authorities, except where otherwise required or permitted by law.
Employers Impacted
The law applies broadly to employers operating in Colorado and is especially relevant for employers that:
- Conduct Form I-9 verification;
- Employ migrant or seasonal workers;
- Utilize onboarding personnel that handle employee identification documents; or
- Maintain practices involving collection or storage of original identification documents.
Employer Takeaway
Colorado employers should review onboarding, hiring, and Form I-9 procedures immediately to ensure compliance. Key action items include:
- Revising hiring and I-9 documentation procedures;
- Ensuring original identification documents are not retained beyond the limited period permitted by law;
- Developing compliant written notices and acknowledgment forms;
- Training HR and onboarding personnel; and
- Reviewing any policies involving storage or handling of original employee identification documents.
Because violations can result in criminal liability, civil lawsuits, and enhanced penalties in certain circumstances, employers should promptly assess current practices and implement any necessary changes.