Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 12-0811.01 Jerry Barry x4341 HOUSE BILL 12-1296 HOUSE SPONSORSHIP Singer, SENATE SPONSORSHIP (None), House Committees Senate Committees Judiciary A BILL FOR AN ACT Concerning the "Income Protection Act". Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The bill creates the crime of wage theft for failing to pay wages or compensation to an employee or falsely denying the amount of wages or compensation due. Each failure to pay or false denial of wages or compensation due to each employee in each calendar month is a separate violation. It is an affirmative defense if a person is unable to pay the wages or compensation. The bill incorporates the definitions of "employee" and "wages or compensation" from other statutes pertaining to wages. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. This act shall be known as the "Income Protection Act". SECTION 2. In Colorado Revised Statutes, add 18-4-420 as follows: 18-4-420. Wage theft. (1) A person commits the offense of wage theft if the person is under a duty to pay, or the person has financial control of an entity that is under a duty to pay, wages or compensation to an employee, and the person knowingly: (a) Fails to pay the wages or compensation to an employee; or (b) Falsely denies that the amount of wages or compensation is due to an employee. (2) Wage theft is: (a) A class 2 misdemeanor if the amount of wages or compensation involved is less than five hundred dollars; (b) A class 1 misdemeanor if the amount of wages or compensation involved is five hundred dollars or more but less than one thousand dollars; (c) A class 4 felony if the amount of wages or compensation involved is one thousand dollars or more but less than twenty thousand dollars; (d) A class 3 felony if the amount of wages or compensation involved is twenty thousand dollars or more. (3) For purposes of this section, each failure to pay or false denial of wages or compensation to each employee due during each calendar month is a separate violation. (4) (a) It is an affirmative defense to an offense described in this section if: (I) The person does not have the ability to pay the wages or compensation; and (II) At the time of requesting the labor or service, the person has a good faith and reasonable belief that payment will be made in a timely manner when due. (b) For purposes of this subsection (4), a person is presumed to have the ability to pay if, at the time the offense is committed, the person or entity has legal control over a sufficient amount of money to pay the wages or compensation and has not filed for protection under the federal bankruptcy laws. (5) As used in this section, unless the context otherwise requires: (a) "Employee" has the same meaning as set forth in section 8-4-101 (4), C.R.S. (b) "Wages or compensation" has the same meaning as "wage" or "compensation" in section 8-4-101 (8), C.R.S. SECTION 3. Potential appropriation. Pursuant to section 2-2-703, Colorado Revised Statutes, any bill that results in a net increase in periods of imprisonment in the state correctional facilities must include an appropriation of moneys that is sufficient to cover any increased capital construction and operational costs for the first five fiscal years in which there is a fiscal impact. Because this act may increase periods of imprisonment, this act may require a five-year appropriation. SECTION 4. Act subject to petition - effective date - applicability. (1) This act takes effect September 1, 2012, except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within the ninety-day period after final adjournment of the general assembly, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2012 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor. (2) The provisions of this act apply to offenses committed on or after the applicable effective date of this act.