The “Keep Jobs In Colorado Act” Bad for Business, Bad for the State?

by Sherman & Howard L.L.C.
Contact

A new law currently being debated in Colorado's legislature could expose companies working on public projects to civil penalties if their workforce does not consist of at least 80% Colorado labor.  House Bill 1292, better known at the "Keep Jobs in Colorado Act," was originally drafted by the AFL-CIO and is sponsored by Representatives Sanford Lee and Dan Pabon in the House and Senators Andrew Kerr and Jeanne Nicholson in the Senate.  If passed, this bill will also raise costs for contractors who win public contracts because it requires enforcement of reciprocity requirements for non-resident bidders.   Just to be clear, the 80% Colorado labor and non-resident bidder reciprocity requirements already exist under Colorado law.  Currently, however, no state agency entity is tasked with enforcement of these requirements.  The new bill would give these requirements teeth by tasking state agencies with enforcing them and imposing civil penalties on contractors who fail to comply.[1]

For instance, the current version of the bill requires the Colorado Department of Labor to receive complaints about, investigate, and enforce violations of the 80% Colorado labor rule.  The CDL would be required to impose on contractors a $5,000 civil penalty for the first violation of the requirement.  The penalty for a second violation would be the lesser of $10,000 or 1% of the cost of the contract, and the penalty increases to the lesser of $25,000 or 1% of the cost of the contract for a third violation.  Three violations in five years could also result in a contractor's debarment. 

The non-resident bidder reciprocity requirement requires a percentage disadvantage to be applied to bids from companies whose home states give percentage bidding preferences to residents of that state.  The amount of the disadvantage would equal the amount of the percentage advantage in the home state.  Under the new law, the Colorado Department of Personnel would have to compile a list of states that give preferences to resident bidders, provide recommendations for enforcement of this provision, and enact rules necessary to implement the reciprocity requirement.

If enacted, this bill will likely raise costs for contractors and Colorado taxpayers because instead of hiring subcontractors and labor at the lowest cost, contractors will have to comply with the law's labor and reciprocity requirements.  Contractors will also have to bear increased administrative burdens and costs to ensure they are in compliance, and they face investigation and fines if they are not.  The bill has passed the Colorado House and Senate and is in the reconciliation process.  It will likely then proceed to the Governor's office for signature.  We encourage contractors and other companies that bid Colorado public projects to contact the Governor's office to voice their position on the bill. 

If you have questions or would like additional information regarding the bill, please contact attorneys in Sherman & Howard's Construction Law group.

[1]Proposed amendments to the bill allow a contractor to obtain a waiver of the 80% Colorado labor requirement, but only if it provides reasonable evidence to demonstrate insufficient Colorado labor to do the work.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sherman & Howard L.L.C. | Attorney Advertising

Written by:

Sherman & Howard L.L.C.
Contact
more
less

Sherman & Howard L.L.C. on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
Feedback? Tell us what you think of the new jdsupra.com!