Labor & Employment Law Update

House Bill 26-1283 (“Protections Regarding Seizures of Identification Documents”), signed by Governor Jared Polis on June 3, 2026, sharply limits when a Colorado employer may demand, keep, or control an employee's or applicant's government-issued ID. The new law carries both criminal and civil exposure.

Colorado HB 26-1283 Restricts Employers From Retaining Employee Identification Documents

The new statute (C.R.S. § 8-2-124.5) bars employers and their agents from requiring any employee, applicant, or worker to surrender a government-issued identification document.

There is a narrow carve-out for Form I-9 verification (but that requires notice and acknowledgment — see next section). An employer may:

• Request and temporarily retain an ID to complete the Form I-9;
• Keep the original only as long as needed to verify eligibility—never more than 10 hours; and
• Keep a copy in its records instead of the original.

An employer may also retain an identification document where (1) retention is required or permitted by other state or federal law, or (2) retention is pursuant to a signed judicial warrant.

What Notice and Acknowledgment Requirements Does Colorado HB 26-1283 Impose?

Each time an employer verifies work eligibility for a Colorado employee, it must notify the individual of the ID-retention prohibition. The notice must be (1) in writing, (2) in English, and (3) if the employer knows the individual's primary language is not English, in that language. Further, the individual must acknowledge the notice.

Employers must keep both the notice and the acknowledgment in the employee's personnel file.

What Are the Risks of Violating Colorado’s New Employee ID Document Law?

The new law also amends other Colorado statutes to impose penalties for non-compliance:

• Knowingly confiscating, possessing, or controlling another person's driver's license, government ID, Social Security card, or passport without permission is a class 2 misdemeanor under 18-5-903.5.
• If the conduct involves intimidation or harassment based on a protected characteristic, or a threat to turn a worker's ID over to federal immigration authorities, it falls under Colorado's bias-motivated crime statute (§ 18-9-121)—a class 1 misdemeanor or, in aggravated cases, a felony.

Workers may also sue for return of the document and for damages.

Employer Compliance Checklist

1. Stop retaining original IDs beyond what the Form I-9 requires/permits.
2. Copy the ID during Form I-9 verification and return the original well within the 10-hour limit.
3. Add the written notice and acknowledgment to your new-hire packet, translated where needed.
4. Train HR and managers responsible for Form I-9 on the new onboarding process.
5. Audit existing files and return any originals still on hand.