The Colorado POWR ACT in a Nutshell
The Protecting Opportunities and Workers’ Rights (POWR) Act, signed into law in Colorado between 2023 and revised through 2025 has significantly expands employee rights. It modifies employer obligations related to employment discrimination, harassment and retaliation. It broadly impacts areas like harassment definitions, nondisclosure agreements, prompt investigations and record-keeping requirements.
- New Record-Keeping Requirements:. The POWR Act mandates employers maintain personnel and employment records for at least five years, including records related to employee complaints, requests for accommodation, and disciplinary actions. A summary of the investigation and the outcome must be included.
- Limited Affirmative Defenses:.The Act places restrictions on employer defenses against harassment claims, particularly those involving supervisory harassment. Only if the employer has trained all staff has a defense for harassment, discrimination, retaliation and now “unfair practices.”
- Additions to Protected Classes:.Marital status is now explicitly included as a protected class under the Colorado Anti-Discrimination Act (CADA) EXCEPT it may discharge an employee or refuse to hire an applicant where (i) a spouse or family member directly or indirectly would exercise supervisory, appointment, or dismissal authority or disciplinary action over the other spouse or family member; (ii) a family member would audit, verify, receive, or be entrusted with moneys received or handled by the other spouse or other family member; or (iii) the other spouse or family member has access to the employer’s confidential information, including payroll and personnel records. In such cases, the employee must disclose to the employer, as soon as possible, if an employee is a relative of another applicant or employee.
- Change to Disability Accommodations:.The POWR Act modifies the criteria for making disability accommodations unless there is “no reasonable accommodation” would allow the person to satisfy the essential functions of the job. Only then the accommodation may be declined.
- Nondisclosure Agreement Limitations:.The law places restrictions on the use of nondisclosure agreements (NDAs), particularly those that limit an employee’s ability to discuss alleged discriminatory or unfair employment practices. To be enforceable, NDAs must meet specific criteria, such as applying equally to the employer and employee and explicitly stating that it doesn’t restrict disclosure of facts related to discrimination
- Expanded Definition of Harassment: The POWR Act redefines harassment, moving away from the traditional “severe or pervasive” standard and focusing on any “unwelcome” conduct that is subjectively offensive to the individual and objectively offensive to a reasonable person in a protected class.
In essence, the POWR Act aims to:
- Enhance employee protections against discrimination and harassment.
- Strengthen the legal framework and training to address workplace misconduct.
- Place greater obligations on employers to prevent and address harassment and discrimination.
- Promote a fairer workplace environment in Colorado.