Colorado Adds Extra Step to Employers’ I-9 Requirements

On June 3, 2026, Colorado enacted a law restricting how employers handle documentation when completing employees’ I-9 forms.  The law, which took immediate effect, is aimed at protecting marginalized workers from losing access to their key documents, but it imposes new requirements for all Colorado employers. 

All U.S. employers must confirm that their new hires are authorized to work in the U.S. by completing and maintaining a Form I-9.  This process requires employers to physically inspect original documents establishing the employee’s identity and authorization to work.  This process must be completed within three business days of the employee’s first day of work.

Colorado’s new law, HB26-1283, adds an additional requirement for Colorado employers addressing how employers handle and retain documents.  It also requires employers to provide a special notice to the employee, which must be signed and retained with the employee’s documents.

New Requirements

• Document retention: Employers are prohibited from demanding, confiscating or requiring an employee to surrender their government-issued identification. Employers may request and temporarily retain government-issued identification cards for the purpose of completing Form I-9, but only for as long as necessary to verify identity and confirm work authorization.  In no event may this documentation be retained for more than 10 hours.  Employers may still retain copies of the government-issued documents.
  
  
• Notice requirement: Employers must also notify employees of this prohibition concerning retention of original documents. The notice must be in writing, in English or in their primary language, if known.  This notice must be acknowledged by the employee, and the employer must retain a copy of both the notice and the acknowledgment in its records.

Impact on Colorado Employers

Colorado’s new law imposes a new burden on employers who employ persons in Colorado.  Such employers must now ensure that their HR or other staff responsible for completing the I-9 Forms have copies of the required written notice, provide it to the employee, obtain a signed acknowledgment and maintain that acknowledgment with the employee’s records.

Penalties

Knowingly possessing, confiscating, or controlling an employee’s actual documentation (driver’s license, government-issued identification card, social security card or passport) for longer than 10 hours is a Class 2 misdemeanor.  In addition to being a criminal offense, affected employees may sue for damages.  The law does not specify penalties for violating the notice and acknowledgment requirement, but employers should still treat those as mandatory obligations.

Conclusion

As of this writing, Colorado has not provided model language for the required notice. Colorado employers should work with employment counsel to design an appropriate notice and ensure that the acknowledgment is maintained with the employee’s records.