Colorado's New Strict Requirements on Employment Eligibility Verification

Colorado employers face new compliance mandates regarding the handling of government identification documents. Effective June 3, 2026, House Bill 26-1283 limits how long businesses may retain original ID documents provided by employees or applicants for eligibility verification purposes. Employers are now restricted to holding these original documents for a maximum of ten hours.

While the law permits the creation and retention of copies as employment records, the handling of original documentation is strictly capped. This applies to all individuals working in the state, including seasonal and migrant workers. Employers should audit their current onboarding and document handling procedures immediately to ensure they meet these updated standards.

Beyond retention limits, the law requires employers to provide written notice to individuals during the employment eligibility verification process. This notice must be acknowledged by the employee and kept in their personnel files. The requirement for notice applies regardless of whether the employer chooses to retain original documents or only copies, making it a mandatory step for every verification instance.

Violations of these requirements carry significant risks. The legislation establishes both civil liability for damages caused by improper confiscation and criminal liability. Specifically, retaining documents beyond the statutory limit or threatening to turn identification documents over to federal immigration authorities outside of legal requirements can result in charges related to bias-motivated crimes and class 1 misdemeanors. Employers must prioritize these changes to mitigate legal exposure.