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Colorado Misclassification Penalties Changed: What Employers Need to Know

Colorado quietly made certain payroll mistakes more expensive. While the core worker classification rules remain the same, enforcement and penalties have changed significantly, increasing the financial and operational risk for employers. The most common trigger is worker misclassification: a contractor relationship that begins appropriately but, over time, starts to function like employment. Under Colorado’s updated wage enforcement framework, t…
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Fort Collins Area Chamber of Commerce broke the news in on Monday, February 2, 2026.
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