Colorado’s New Rules on ID Retention

Colorado seems to be turning up the heat on compliance in 2026. Soon after the enactment of the Colorado Artificial Intelligence Act (SB24-205), Colorado is now enforcing new compliance requirements and restrictions for employers in the state. Signed by Governor Jared Polis on June 3, 2026, Colorado’s HB26-1283 introduces new restrictions on how employers handle government-issued identification documents. The law went into effect on August 12, 2026.

The law aims to protect workers, especially vulnerable groups like migrants and seasonal laborers. For employers, this may mean making some minor administrative adjustments to everyday hiring processes.

A quick summary of changes Colorado employers need to know

Crunched on time? Here is a high-level overview of changes that employers hiring in Colorado need to know.

Who does this apply to?

The law applies to all employers and their agents in Colorado and covers “employees, applicants, and others performing or seeking work for the employer.”

Employer requirements

With a few minor exceptions, employers are generally prohibited from demanding, confiscating, or otherwise requiring the surrender of government‑issued identification documents from employees or applicants.

Employers and employer agents that need an individual’s ID for the purpose of verifying employment eligibility under the Employment Eligibility Form I-9, or its successor form, are:

1. Limited to retaining government-issued identification documents from employees or applicants for a 10-hour period to verify employment eligibility and make a copy of their ID.
2. Required to provide a written notice explaining worker protections under the law and obtain acknowledgment from the worker or applicant confirming receipt of the notice.

Additional context for exceptions and notice requirements

While HB26-1283 tightens up notice, recordkeeping, and ID handling, employers who are allowed to temporarily retain someone’s government-issued ID are permitted to keep a copy for their records. There are also a few exceptions for lawful ID retention.

Exceptions to retaining an ID

Employers are permitted to retain an ID if a judge has signed a warrant authorizing retention, or if HB26-1283 is directly superseded by a separate state or federal law that allows or necessitates it.

Written notice requirements

The written notice and record retention requirements present the biggest changes in hiring and employment activities. When employers temporarily retain identification to verify employment eligibility, they are required to:

1. Provide a written notice clearly explaining the law’s protections. The notification must be in English. If the employer knows the individual’s primary language is not English, the employer must provide a notice in the individual’s primary language.
2. Obtain explicit acknowledgment from the individual confirming they received the notice.
3. Retain copies of both the notification and the acknowledgment as part of the employer’s compliance records.

Penalties for non-compliance

Employer actions involving intentional unlawful retention of a government-issued identification document will be treated as a Class 2 misdemeanor. However, unlawful retention of a government-issued ID involving “bias-motivated conduct” and bodily injury may result in additional penalties.

• Elevation to class 1 misdemeanor: Actions in violation of the law that are considered bias-motivated may be elevated to a class 1 misdemeanor.
• Elevation to class 5 felony: Bias-motivated violations of the law that involve bodily injury may be elevated to a class 5 felony
• Elevation to class 4 felony: Bias-motivated violations that cause bodily injury may be elevated to a class 4 felony if the offender is physically aided or abetted by one or more other people.

The law does allow a private right of action, meaning that individuals can request a court order for the immediate return of confiscated documents and pursue damages caused by the offense.

Employers hiring or operating in Colorado should meet with their legal counsel to ensure compliance. All employers should consult their legal counsel before making any changes to hiring or I‑9 processes.

For additional details and context, employers can review HB26-1283 here.

This content is for informational purposes only and shall not constitute legal opinion or advice. Consult your legal counsel to ensure compliance.