Colorado Compliance Connection - June 2026

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Federal  Compliance Update  

PCORI Fees Due July 31, 2026 –Updated Form 720

The IRS released an updated Form 720 for Patient-Centered Outcomes Research Institute (PCORI) filing.  

Who Must File Form 720 forPCORI Fees?

The Patient-Centered OutcomesResearch Institute (PCORI) fee is an annual fee established under theAffordable Care Act to fund medical research that helps patients and healthcareproviders make more informed treatment decisions.  The fee is reported and paid to the IRS usingForm 720, Quarterly Federal Excise Tax Return, even though most employers fileit only once each year.

Employers Required to File Form720

Generally, an employer mustfile Form 720 and pay the PCORI fee if it sponsors an applicable self-insured(self-funded) health plan, including:

• Traditional self-funded medical plans
• Level-funded health plans
• Health Reimbursement Arrangements (HRAs),     including:
   
  • Integrated HRAs
   
  • Individual      Coverage HRAs (ICHRAs)
   
  • Qualified Small      Employer HRAs (QSEHRAs)
 
• Certain other self-insured medical reimbursement     arrangements

The employer (or plan sponsor)is responsible for calculating the average number of covered lives during theplan year and paying the applicable fee to the IRS.

Employers required to pay PCORIfees must report and pay the 2025 PCORI fees by July 31, 2026, using theupdated IRS form.  Insurers areresponsible for calculating and paying the fee for fully insured plans.

The following fees apply toplan years that ended in 2025 and are based on the number of covered lives:

·       $3.47 per covered life for plan years ending betweenJanuary 1 and September 30, 2025

·       $3.84 per covered life for plan years ending betweenOctober 1 and December 31, 2025

Form 720 and Form 720-V shouldbe completed for the second quarter of 2026.

DOL Clarifies EmployerContributions to Trump Accounts Generally Do Not Create ERISA Plans

On June 17, 2026, the U.S.Department of Labor (DOL) issued guidance (Technical Release 2026-02) on whether Trump Accounts maybe employee pension benefit plans subject to the Employee Retirement IncomeSecurity Act (ERISA), including when employers make contributions through anInternal Revenue Code (Code) Section 128(c) Trump Account ContributionProgram.  

Technical Release 2026-02provides that Trump Accounts and Trump Account Contribution Programs generallywill NOT constitute employee pension benefit plans subject to ERISA.  This guidance provides clarity for employersthat are considering implementing a Trump Account Contribution Program.  According to this guidance:

·       Employer contributions to Trump Accounts will notgenerally result in ERISA coverage for a Trump Account or the contributionarrangement where they occur only during the growth period; and

·       Employer involvement with a Trump Account and acontribution arrangement in periods beyond an account beneficiary’s growthperiod should be limited in accordance with the payroll safe harbor conditionsfor individual retirement accounts (IRAs) in 29 CFR2510.3-2(d) to avoid ERISA status.

Trump Accounts

Trump Accounts are a new typeof traditional IRA established by authorized individuals for the benefit ofeligible children. Contributions to Trump Accounts may start July 4, 2026, andcan be made by anyone, including parents or guardians, grandparents, employers,philanthropic contributors or any other source.  Under a pilot program, children born between2025 and 2028 may be eligible to receive a special $1,000 contribution to theirTrump Accounts from the federal government if certain requirements are met.

Contributions are subject to anannual limit of $5,000 (subject to cost-of-living adjustments after 2027),although certain types of contributions are not counted toward this limit, suchas the federal government’s $1,000 pilot program contribution.  The accounts are treated similarly totraditional IRAs for tax purposes, with special rules applying during a “growthperiod” that ends on Dec. 31 of the year before the calendar year in which thechild reaches age 18.

Employers can contribute to theTrump Account of an employee or an employee’s dependent pursuant to a CodeSection 128(c) Trump Account Contribution Program. These contributions are notincludible in the employee’s income for federal tax purposes.  Contributions are limited to $2,500 peremployee per year, subject to cost-of-living adjustments after 2027.  This program must be established pursuant to awritten plan document and meet certain tax rules that apply to dependent careassistance programs regarding discrimination, eligibility, notifications andbenefits.

Also, a Trump AccountContribution Program may be offered via salary reduction under a Section 125cafeteria plan if the contribution is made to the Trump Account of anemployee’s dependent, but not if the contribution is made to the Trump Accountof the employee.

Non-ERISA Status

ERISA’s definition of “employeebenefit pension plan” focuses on employer-established arrangements that provideretirement benefits to employees.  According to the DOL, Trump Accounts and TrumpAccount Contribution Programs that benefit employees’ dependents do not meetthis definition because they do not provide benefits for employees themselves.

Also, the DOL’s guidanceprovides that Trump Account Contribution Programs that benefit employees (e.g.,employees who are age 16 or 17) could potentially trigger ERISA coverage;however, employer contributions to Trump Accounts during the growth period willnot give rise to an ERISA-covered plan where participation is voluntary foremployees, and the employer does not:

·       Impose conditions on utilization of Trump Accountfunds beyond those permitted under the Code;

·       Make or influence the investment decisions withrespect to funds contributed to a Trump Account;

·       Represent that the Trump Accounts or Trump AccountContribution Program is an employee pension benefit plan or an employee welfarebenefit plan established or maintained by the employer; or

·       Receive any payment or compensation in connection witha Trump Account.

After the growth period, aTrump Account is generally subject to the rules that apply to traditional IRAs.To avoid ERISA plan status, employer involvement with a Trump Account after thegrowth period should be limited in accordance with the payroll safe harborconditions for IRAs in 29 CFR2510.3-2(d).

    State  Compliance Update  

Colorado Employment Law Impacts for2026 and Beyond

HB26 – 1143  Non-Employment Educational OpportunitiesBackground Check Information https://leg.colorado.gov/bills/HB26-1143
Status: Signed into law by Governor Jared Polis on June 3, 2026.

Effective date

The act takes effect 90 daysafter adjournment of the legislative session, unless a referendum petition isfiled.

What the law does

HB26-1143 is designed to removebarriers for individuals who do not have a Social Security number when applyingfor non-employment-based educational opportunities that require a backgroundcheck.

The law:

• Requires acceptance of an     Individual Taxpayer Identification Number (ITIN)
  
   
  • If an organization requires      a Social Security number to conduct a background check for a      non-employment educational opportunity, it must generally accept an ITIN      instead of a Social Security number, subject to certain exceptions.
 
• Applies to unpaid     educational opportunities
      Examples     include:
   
  • Unpaid internships
   
  • Volunteer positions
   
  • Pre-apprenticeships
   
  • Clinical rotations or      clinical educational experiences required for graduation or professional      licensure.
 
• Creates special rules for     hospitals and schools
  
   
  • Licensed or certified      hospitals and certain schools that serve vulnerable populations may      accept a fingerprint-based background check instead of requiring an ITIN.      
   
  • State colleges and      universities offering programs involving vulnerable populations may      choose to accept either:
     
    • an ITIN, or
     
    • a fingerprint-based       background check.
     
   
 
• Allows limited exceptions
      A     Social Security number may still be required when federal or state law,     accreditation requirements, grant requirements, or certain reimbursement     processes specifically require one.
• Creates enforcement and     penalties
  
   
  • The Colorado Attorney      General may enforce the law through civil actions.
   
  • Civil penalties are:
     
    • $2,000 for a first violation.
     
    • $5,000 for each subsequent       violation.
     
   

Impact on Colorado employers

Most private employers: Minimalor no direct impact.

This law does not apply toemployment positions.  It specificallyexcludes positions that constitute employment under Colorado law.

Organizations that may beaffected include:

• Hospitals
• Health care systems
• Universities and colleges
• K-12 schools
• Nonprofits
• Organizations that host     unpaid interns, volunteers, clinical students, or other non-employment     trainees requiring background checks.

Affected organizations should:

• Review background check     policies and forms.
• Update procedures so     applicants for covered unpaid educational opportunities are not     automatically required to provide a Social Security number.
• Train HR, volunteer     coordinators, student placement staff, and compliance personnel on the new     requirements.
• Coordinate with background     check vendors to ensure ITINs or fingerprint-based checks can be processed     where required.

Bottom line

HB26-1143 is not a generalemployment law.  Instead, it affectsorganizations that administer unpaid educational, clinical, internship, orvolunteer opportunities requiring background checks.  For most Colorado employers, there is littledirect impact unless they sponsor or host these types of non-employmenteducational programs.

HB26 – 1207  Disclosure of Demographic Workforce Data https://leg.colorado.gov/bills/HB26-1207

Status: Signed into law by Governor Jared Polis on June4, 2026.

Effective date

The law becomes effective July 1, 2027, assuming noreferendum petition is filed. Covered employers must begin reporting with theirfirst Colorado periodic report due on or after July 1, 2027.

What the law does

HB26-1207 creates a state-level workforce demographicreporting requirement for certain private employers.

Specifically, the law:

• Requires     certain employers to submit EEO-1 workforce demographic data to the     Colorado Secretary of State as part of their periodic business filings.
• Applies     to private employers conducting business in Colorado with 100 or more     employees that were required to file an EEO-1 report with the EEOC as of     March 1, 2026.
• Requires     reporting even if the federal government eliminates or changes EEO-1     reporting requirements.  The law     ties the required data to the federal EEO-1 form as it existed on March 1,     2026, ensuring Colorado continues to receive workforce demographic     information regardless of future federal action.

Impact on Colorado employers

Who is affected?

• Private     employers with 100 or more employees that conduct business in Colorado and     meet the EEO-1 reporting criteria.
• The     law does not apply to:
   
  • State agencies
   
  • Local governments
   
  • Federal agencies
   
  • School districts
   
  • Institutions of higher education
   
  • Certain quasi-governmental entities.

Employer action items

Covered employers should prepare to:

• Review     current EEO-1 demographic data collection processes.
• Ensure     demographic information is accurate and complete.
• Coordinate     with HR, legal, and compliance teams regarding Colorado's new filing     requirements.
• Monitor     guidance from the Colorado Secretary of State regarding the reporting     format and filing procedures.
• Continue     collecting EEO-1 data even if federal reporting requirements are reduced     or eliminated.

Practical considerations

While the law largely mirrors existing federal EEO-1reporting, it introduces several new compliance considerations:

• Colorado     has created an independent state reporting obligation that survives any     future repeal of federal EEO-1 reporting.
• The     statute leaves some implementation questions unanswered, such as the     precise scope of employees to be reported and how reported data will be     treated for confidentiality or public records purposes.  Additional guidance from the Secretary of     State is expected before the reporting requirement takes effect.

Bottom line

HB26-1207 establishes one of the nation's firststate-mandated EEO-1 reporting requirements.  Beginning July 1, 2027, covered privateemployers with 100 or more employees must include workforce demographic (EEO-1)data in their Colorado periodic business filings, regardless of whether thefederal government continues to require EEO-1 reporting.  Employers should begin evaluating theirdemographic data collection and reporting processes well before the effectivedate.

HB26 – 1272  Extreme Temperatures Worker Protections https://leg.colorado.gov/bills/HB26-1272
Status: Signed into law by Governor Jared Polis on June 4, 2026.

Effective date

The law takeseffect 90 days after adjournment of the legislative session, unless areferendum petition is filed.

What the lawdoes

HB26-1272 isColorado's first broad workplace law addressing both extreme heat and extremecold across industries.  It establishes aphased approach, directing the Colorado Department of Labor and Employment(CDLE) to develop standards and requiring employers to implementtemperature-related safety measures over time.

The lawrequires CDLE to:

• Collect statewide data on temperature-related workplace     injuries, illnesses, and emergencies beginning January 15, 2027,     including:
   
  • Creating a public reporting platform.
   
  • Collecting data from the Colorado Department of Public Health      and Environment (CDPHE), Workers' Compensation, and other state sources.
 
• Develop a Model Temperature-Related Injury and Illness     Prevention Plan (TRIIPP) by July 1, 2028.  The model plan must include guidance on:
   
  • Access to cool, potable drinking water
   
  • Cool-down and warm-up rest areas
   
  • Temperature monitoring
   
  • Acclimatization for new and returning workers
   
  • Employee training
   
  • Emergency response procedures.
 
• Adopt rules as needed to implement the law and review/update     the model TRIIPP at least every five years.

Employerrequirements

Employers withworkers exposed to extreme heat or cold will eventually be required to:

• Develop and maintain a Temperature-Related Injury and Illness     Prevention Plan (TRIIPP).
• Submit the TRIIPP to CDLE by September 1, 2028.
• Provide temperature safety training that meets CDLE standards.    
• Follow future CDLE rules regarding plan updates and     implementation.

Who isaffected?

The law broadlyapplies to employers with workers exposed to extreme temperatures, includingmany:

• Construction employers
• Landscaping companies
• Public works departments
• Utilities
• Agriculture
• Warehousing and manufacturing
• Delivery and transportation employers
• Indoor workplaces where temperatures become dangerously hot or     cold.

Impact onColorado employers

Although manyof the detailed requirements will not be implemented until CDLE issues guidanceand model plans, employers should begin preparing now by:

• Identifying jobs with heat or cold exposure.
• Reviewing current practices for:
   
  • Drinking water availability
   
  • Shade, cooling, warming, and rest breaks
   
  • Emergency response procedures
   
  • Acclimatization of new employees
   
  • Supervisor and employee training.
 
• Monitoring CDLE rulemaking during 2027–2028 for specific     compliance requirements.

Bottom line

HB26-1272creates a statewide framework for protecting workers from extreme heat andcold.  While employers are not requiredto submit prevention plans until September 1, 2028, the law takes effect onAugust 12, 2026, and begins a phased rollout that includes state datacollection, development of model prevention plans, future rulemaking, and mandatoryemployer training.  Employers withoutdoor or temperature-exposed workforces should begin evaluating their safetyprograms well before the compliance deadlines.

SB26 – 047  Colorado Firefighter Safety Act PetitionElections https://leg.colorado.gov/bills/SB26-047

Status: Signed into law by Governor Jared Polis on April20, 2026.

Effective date

The law takeseffect 90 days after adjournment of the legislative session, unless areferendum petition is filed.

What the law does

SB26-047 makes a procedural change to the ColoradoFirefighter Safety Act by expanding the types of elections in which voters maydecide whether firefighters employed by a local government will have collectivebargaining rights.

Specifically, the law:

• Expands     the definition of "general election" to include coordinated     elections under Colorado's Uniform Election Code.  This allows petitions concerning     firefighter collective bargaining to appear on a broader range of election     ballots.
• Updates     election terminology by replacing the outdated term "general     municipal election" with "regular municipal election" to     align with current Colorado election law.

Impact on Colorado employers

Most Colorado employers: No impact.

This law affects only local government employers withfire departments that are subject to the Colorado Firefighter Safety Act.

For affected public employers, the law:

• Makes     it easier for voters to place firefighter collective bargaining questions     on the ballot by allowing those questions to appear during coordinated     elections.
• May     increase the opportunities for firefighters to seek voter approval for     collective bargaining rights.
• Does     not change the collective bargaining process itself or create new     bargaining obligations absent voter approval.

Bottom line

SB26-047 is a local government labor relations andelection law, not a general employment law.  It broadens when voters can consider petitionsrelated to firefighter collective bargaining by allowing those measures toappear on coordinated election ballots.  Privateemployers have no compliance obligations under this law.

SB26 – 052  Coal Transition Community Investment https://leg.colorado.gov/bills/SB26-052

Status: Signed into law byGovernor Jared Polis on March 9, 2026.  

Effective Date

The bill includes a safetyclause, so it became effective March 9, 2026.

What the law does

SB26-052 is intended to supportcommunities impacted by coal mine and coal-fired power plant closures bycreating employment opportunities for displaced workers and providing greaterflexibility in how transition funds are invested.

The law:

• Creates a hiring preference     for qualified coal transition workers in designated coal transition     communities.
• Applies to covered     businesses operating in those communities that construct or operate:
   
  • Railroads,
   
  • Utilities,
   
  • Energy generation      facilities, or
   
  • Advanced manufacturing      facilities.
 
• Requires covered businesses     to make good-faith efforts to provide a first and preferred opportunity     for employment to qualified coal transition workers.  A non-qualified applicant may be hired     only if:
   
  • No qualified coal      transition worker applies,
   
  • Qualified workers decline      the job offer, or
   
  • Qualified workers are less      qualified than other applicants.

The law also requires coveredbusinesses to:

• Consult with the Colorado     Just Transition Office and other designated organizations to identify     qualified workers.
• Submit an annual report to     the Just Transition Office if a qualified coal transition worker applied,     including:
   
  • Positions filled,
   
  • Number of qualified coal      transition workers hired,
   
  • Number of non-qualified      workers hired, and
   
  • Recruitment efforts      undertaken to attract qualified coal transition workers.

Additionally, the law allowspublic entities to invest settlement or transition funds received because ofcoal facility closures using a broader range of investment options approvedunder their investment policies.

Impact on Colorado employers

Most Colorado employers: Noimpact.

The law applies only to coveredbusinesses operating in designated coal transition communities and engaged inspecific industries.

Covered employers should:

• Review hiring practices to     ensure qualified coal transition workers receive the required hiring     preference.
• Develop procedures to     document good-faith recruitment efforts.
• Coordinate with the Just     Transition Office when recruiting.
• Prepare to complete annual     reporting if qualified coal transition workers apply for employment.

Bottom line

SB26-052 is a targeted workforcedevelopment law, not a statewide employment law.  It creates a hiring preference and reportingrequirements for certain employers operating in Colorado's coal transitioncommunities while expanding investment options for public entities managingcoal transition funds.  For the vastmajority of Colorado employers, the law creates no new compliance obligations.

SB26 – 093  Workers’ Compensation Insurance CoverageVerification https://leg.colorado.gov/bills/SB26-093

Status: Signed into law byGovernor Jared Polis on May 29, 2026.

Effective Date

The bill includes a safetyclause, so it became effective May 29, 2026.

What the law does

SB26-093 is intended to improvecompliance with Colorado's workers' compensation insurance requirements in theconstruction industry.

The law requires that:

• Applicants for building     permits or construction permits for projects with a total construction     cost exceeding $1 million must, before work begins, submit a signed     declaration under penalty of perjury verifying that every person working     under the permit will maintain valid workers' compensation insurance     coverage throughout the project.
• Any person may file a     complaint with the Colorado Division of Workers' Compensation alleging     that an employer or contractor is not maintaining the required workers'     compensation insurance coverage.

Impact on Colorado employers

Most Colorado employers: Noimpact.

The law primarily affects:

• General contractors
• Construction companies
• Developers
• Businesses performing work     on construction projects requiring permits exceeding $1 million in total     construction costs.

Covered employers should:

• Verify that workers'     compensation insurance is maintained for all employees working under the     permit.
• Review subcontractor     agreements and onboarding procedures to ensure subcontractors maintain     required workers' compensation coverage.
• Keep documentation     supporting the required declaration in case of an audit or complaint.
• Understand that     noncompliance could result in investigations and potential delays to     construction projects.

Bottom line

SB26-093 strengthens enforcementof Colorado's existing workers' compensation laws for large constructionprojects by requiring permit applicants to certify workers' compensationcoverage before work begins and by creating a formal complaint process for allegednoncompliance.  While the law creates newcompliance obligations for construction employers, it has little or no impacton employers outside the construction industry.

Colorado UpdatesVoting Leave Law

Colorado recently updated itsvoting leave law to require employers of all sizes to allow employees to takeleave to vote on any day that voter service and polling centers areopen.  (Previously, voting leave was onlyrequired on the day of the election.)

Employers don’t have to grantleave if an employee has at least three consecutive hours during which they’renot scheduled to work while the polls are open.

HB26-1113 wassigned by the governor on June 1, 2026, and took immediate effect.

Colorado RequiresEEO-1 Data in State Business Filings

Beginning July 1, 2027, certainemployers with 100 or more employees will need to include federal EEO-1 data intheir Periodic Reports filed with the Colorado Secretary of State.  Employers covered by this requirement arethose that:

·       Are required to file PeriodicReports with the Colorado Secretary of State (these reports have to be filed bycertain state-registered business entities, like LLCs and corporations), and

·      Were(or would have been) required to submit EEO-1 data to the EEOC as of March 1,2026.

Notably, even if the federalgovernment eliminates the federal EEO-1 requirement, covered employers willstill need to include the data that was covered by the EEO-1 in their PeriodicReports.

HB26-1207 wassigned by the governor on June 4, 2026.

Colorado RestrictsEmployer Retention of Employee IDs

Colorado recently enacted a law that prohibits employersof all sizes from taking, keeping, or otherwise requiring applicants oremployees to surrender their government- issued ID.  The law was signed by the governor on June 3,2026, and became effective immediately.

Employers can hold an employee’s ID during theForm I-9 process and make any necessary copy, but only for as long as it takesto verify their employment eligibility and for no longer than 10 hours.  Once employment eligibility is verified andany copy made, the ID must be returned to the employee.  Employers can retain the copy.

Notice Requirement

When verifying employment eligibility, employers need togive employees written notice about how their ID can be held and used.  The notice needs to be provided in English andin the individual’s primary language (if the employer knows it isn’t English).  Employers need to get an acknowledgment fromthe employee confirming that they received the notice and keep a record of boththe notice and the acknowledgment.

The law doesn’t say whether a template notice will beprovided or how long employers need to retain notice and acknowledgmentrecords.  We recommend keeping them forat least as long as you retain other employment records.

Action Items

Begin providing written notice and collectingacknowledgments as required.  Ensure thatthose verifying employment eligibility are aware that they need to be returningdocuments promptly.

COHB 26-1283 wassigned by the governor on June 3, 2026.

    Compliance  Calendar  

July

7/31 – Form 5500 Filing Deadline(Calendar Year Plans)

7/31 – PCORI Fee Deadline

August

8/1 – VETS – 4212 Filing Open (federalcontractors)

September

9/3 - Summary Annual Report (SAR) Deadline for Calendar Year Plans

Disclaimer:

Lighthouse HR Support (LHRS) providespractical human resource information and guidance based upon our knowledge andexperience in the industry and with our clients.  LHRS services are not intended to be asubstitute for legal advice.  LHRSservices are designed to provide general information to human resources and/orbusiness professionals regarding human resource concerns commonlyencountered.  Given the changing natureof federal, state, and local legislation and the changing nature of courtdecisions, LHRS cannot and will not guarantee that the information iscompletely current or accurate.  LHRSservices do not include or constitute legal, business, international,regulatory, insurance, tax, or financial advice.  Use of our services, whether by phone, emailor in person shall indicate your acceptance of this knowledge.  Information provided in part by Mineral andZywave.  

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