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The U.S. Department of Labor (DOL), through its Employee Benefits Security Administration (EBSA), has released a new
model Employer CHIP Notice with information current as of July 31, 2026.
As a reminder, the Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA) imposes an annual
notice requirement on employers that maintain group health plans in states that provide premium assistance subsidies
under a Medicaid plan or a Children’s Health Insurance Plan (CHIP).
An employer can choose to provide the notice on its own or concurrent with the furnishing of:
• Materials notifying the employee of health plan eligibility;
• Materials provided to the employee in connection with an open season or election process conducted under
the plan; or
• The summary plan description (SPD).
An employer is subject to this annual notice requirement if its group health plan covers participants who reside in a state that
provides a premium assistance subsidy, regardless of the employer’s location.
The DOL’s model notice, which employers may use for this disclosure, is updated periodically to reflect changes in the states
that offer premium assistance subsidies. The DOL’s model Employer CHIP Notice includes information current as of
July 31, 2026.
Employers could also choose to prepare their own notices or modify the model notice. Employers should be sure to include
at least the minimum relevant state contact information for any employee residing in a state with premium assistance.
The EBSA’s CHIPRA webpage includes the latest model notice (English language and Spanish language versions are
available), a fact sheet, a compliance assistance guide and other publications for employers and advisers.
Colorado employers should prepare for another increase in the state minimum wage beginning January 1, 2027. The
statewide minimum wage will increase from $15.16 to $15.71 per hour, a 3.6% increase over the 2026 rate according to the
Colorado Department of Labor and Employment (CDLE) in their August 2026 press release.
For employees who qualify for the tip credit, including many restaurant servers and other tipped workers, the statewide tipped
minimum wage will increase to $12.69 per hour.
Colorado’s minimum wage is adjusted annually for cost of living. After voter-approved constitutional amendments increased
the wage by set annual amounts through 2020, subsequent increases have been tied to inflation.
For the 2027 adjustment, Colorado uses the federal Consumer Price Index for All Urban Consumers (CPI-U). At $15.71 per
hour, the 2027 statewide minimum will be 41.5% higher than Colorado’s $11.10 minimum wage in 2019.
The statewide rate is not necessarily the rate every Colorado employer must pay. Municipalities may establish higher
minimum wages. Denver has announced a 2027 minimum wage of $19.84 per hour, and Edgewater and Boulder are also
among the municipalities with rates above the statewide minimum.
Employers should review payroll records before year-end and identify employees whose hourly rates will need to increase.
Businesses with tipped employees should also review their tip-credit practices and applicable minimum rates.
Colorado employers may want to start budgeting now for another increase in the state’s exempt salary threshold in 2027.
Colorado’s minimum salary for certain executive, administrative, and professional exemptions is $57,784 in 2026. Beginning
in 2025, Colorado began adjusting this threshold annually for inflation.
If the 2027 adjustment were 3.6%, the exempt salary threshold could increase to approximately $59,864 per year —
nearly $60,000.
Employers with exempt salaried employees may want to begin reviewing compensation budgets now and identify employees
whose salaries are close to the current threshold.
Important: The 2027 figure above is a planning estimate based on a 3.6% increase and should not be treated as
Colorado’s official 2027 exempt salary threshold. Employers should confirm the final amount published by the Colorado
Department of Labor and Employment before making compliance decisions.
Colorado agricultural employers should begin preparing now for a significant change to the state’s overtime requirements.
Governor Jared Polis signed Senate Bill 26-121 into law on May 4, 2026. Beginning January 1, 2027, covered agricultural
employees generally must receive overtime pay when they work more than 56 hours in a workweek.
Beginning January 1, 2027, Colorado will establish a more uniform overtime threshold for covered agricultural employees.
Under SB 26-121, agricultural employers generally must pay overtime when a covered employee works more than 56 hours in
a workweek. Under the rules in effect since January 1, 2025, agricultural overtime generally begins after 48 hours per week,
while qualifying highly seasonal employers may use a 56-hour threshold for up to 22 peak weeks per year.
That means that beginning in 2027, the 56-hour threshold will apply more broadly, rather than being limited to designated
peak weeks for highly seasonal agricultural employers.
The law retains exceptions for certain employees, including workers principally engaged in range production of livestock on
the open range, qualifying decision-making managers, and certain family members of agricultural business owners.
SB 26-121 also increases penalties for agricultural employers that commit wage theft or employee misclassification, making
accurate employee classification, timekeeping, and payroll practices especially important.
No. The law contains several important exceptions.
The 56-hour requirement does not apply to an agricultural employee who is:
• Principally engaged in range production of livestock on the open range, as defined by applicable federal regulations;
• A qualifying decision-making manager employed by an agricultural employer; or
• A family member of a family owner of an agricultural employer.
The managerial exception has specific requirements. For example, simply giving an employee a “manager” title does not
necessarily make the employee exempt. The statute establishes criteria involving salary, employment status, independent
judgment and decision-making responsibilities.
Employers who believe an exception applies should carefully review the requirements rather than relying solely on an
employee’s job title or family relationship.
SB 26-121 is not limited to changing the overtime threshold. The legislation also increases penalties associated with wage
theft and employee misclassification by agricultural employers.
That makes accurate timekeeping, employee classification and payroll practices particularly important as employers prepare
for 2027.
Although the new overtime threshold does not take effect until January 1, agricultural employers can use the remainder of
2026 to prepare.
Consider reviewing current employee classifications, identifying workers who regularly exceed 56 hours per week, evaluating
whether claimed exemptions actually satisfy the statutory requirements, and confirming that payroll and timekeeping systems
can properly calculate overtime.
Employers may also want to examine staffing plans for busy seasons. Depending on current schedules, businesses could
face a choice between paying additional overtime, adjusting employee schedules, hiring additional workers or restructuring
how work is distributed during peak periods.
Finally, supervisors and payroll personnel should understand that all hours worked need to be accurately recorded, particularly
when employees have irregular schedules or perform work before or after their normally scheduled shifts.
Colorado agricultural businesses operate under workforce conditions unlike many other industries. Weather, harvest
schedules, livestock needs and other factors can make a traditional 40-hour workweek impractical.
SB 26-121 recognizes a different weekly overtime threshold for agricultural employment, but it also creates a clear compliance
obligation beginning in 2027.
Agricultural employers should use the coming months to understand which employees are covered, review their payroll
practices and determine how the 56-hour threshold could affect their labor costs and staffing needs.
Colorado has enacted new protections designed to prevent employers from improperly taking or holding workers’ identification
documents.
House Bill 26-1283, Protections Regarding Seizures of Identification Documents, was passed by the Colorado General
Assembly during the 2026 legislative session and signed by the governor on June 3, 2026. The measure applies protections
to employees, job applicants, and people performing or seeking work in other capacities, including migrant and seasonal
workers.
Under HB 26-1283, with certain exceptions, an employer or an employer’s agent may not demand, confiscate, retain, or
otherwise require a worker or job applicant to surrender a government-issued identification document.
Government-issued identification documents are essential for everyday life. They can be necessary to drive, travel, access
services, establish identity, and complete employment-related requirements. By restricting employers’ ability to take
possession of these documents, the law is intended to ensure that workers maintain control over their own identification.
The law includes consequences for knowingly violating these protections. A person who knowingly violates the prohibition on
taking or retaining an individual’s government-issued identification document commits criminal possession of an identification
document, a class 2 misdemeanor.
HB 26-1283 also addresses situations involving intimidation or harassment. A person may commit a bias-motivated crime
when, with the intent to intimidate or harass someone because of an actual or perceived protected characteristic, the person
violates the law’s identification-document protections or provides, or threatens to provide, the individual’s identification
document to federal immigration authorities, except where doing so is required or permitted by state or federal law. Under the
act, that offense is a class 1 misdemeanor, and victims may also pursue other remedies available under law.
HB 26-1283 is an important reminder for Colorado employers to review their hiring, onboarding, document-verification, and
recordkeeping practices. Supervisors, managers, recruiters, labor contractors, and other individuals acting on behalf of an
employer should understand the difference between lawfully inspecting identification and improperly requiring a worker to
surrender it.
Employers may want to review existing policies and train staff who handle employment documents to ensure their procedures
comply with the new requirements.
Employers and workers with questions about how HB 26-1283 applies to a particular situation should review the enacted
legislation and seek appropriate legal guidance when necessary.
Colorado recently updated its voting leave law to require employers of all sizes to allow employees to take leave to vote on
any day that voter service and polling centers are open. (Previously, voting leave was only required on the day of the
election.)
Employers do not have to grant leave if an employee has at least three consecutive hours during which they’re not scheduled
to work while the polls are open. Colorado employees are entitled to up to two hours of voting leave, subject to the three-
consecutive-hours exception.
HB 26-1113 was signed by the governor on June 1, 2026, and took immediate effect.
9/30 – Summary Annual Report (SAR) Deadline for Calendar Year Plans
10/3 – QSEHRA Notice Deadline (Calendar Year Plans)
10/15 – Medicare Part D Creditable/Non-creditable Coverage Notice
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Lighthouse HR Support (LHRS) provides practical human resource information and guidance based upon our knowledge and experience in the industry and with our clients. LHRS services are not intended to be a substitute for legal advice. LHRS services are designed to provide general information to human resources and/or business professionals regarding human resource concerns commonly encountered. Given the changing nature of federal, state and local legislation and the changing nature of court decisions, LHRS cannot and will not guarantee that the information is completely current or accurate. LHRS services do not include or constitute legal, business, international, regulatory, insurance, tax or financial advice. Use of our services, whether by phone, email or in person shall indicate your acceptance of this knowledge.
