Colorado employers will face new requirements under a law that affects how they handle government-issued identification documents during the hiring and employment eligibility verification process. HB26-1283, which goes into effect on August 12, 2026, restricts how employers handle workers’ and applicants’ identification documents and creates new notice and acknowledgment requirements that employers must incorporate into their onboarding procedures.
The law will have particular significance for multi-state employers. Processes that employers previously standardized across their workforces will now require a Colorado-specific component.
New Requirements in the Form I-9 Process
The law generally prohibits employers and their agents from requiring workers or applicants to surrender government-issued identification documents or from confiscating or retaining those documents, subject to limited exceptions. Employers may continue to examine identification documents for Form I-9 purposes and make copies when permitted, but they may not retain the documents for more than ten hours.
Employers also must provide individuals with written notice describing the law’s protections and obtain an acknowledgment during the I-9 process. Employers must retain the acknowledgment in their employment records.
The Operational Challenge
Employers often use a combination of electronic Form I-9 providers, HRIS systems, and applicant tracking platforms. These systems may not currently accommodate a Colorado-specific notice and acknowledgment requirement. Employers should evaluate whether their existing technology can incorporate the new requirements or whether they need to implement another process.
Consequences for Noncompliance
The law provides criminal penalties for knowing violations of the prohibition against confiscating identification documents, including Class 2 misdemeanor treatment and enhanced penalties for certain bias-motivated conduct.
The law does not appear to establish a specific criminal penalty for failing to provide the required notice or obtain an acknowledgment. Nevertheless, the absence of a specified penalty does not eliminate potential enforcement or litigation risks if an employer’s document-handling practices later come under scrutiny.
Action Items for Employers
Employers with employees in Colorado should begin preparing for the new requirements by:
- Reviewing onboarding procedures. Identify where to incorporate the required notice and acknowledgment into the hiring process.
- Evaluating technology. Determine whether existing Form I-9, HRIS, applicant tracking, or onboarding systems can deliver the notice, and capture the acknowledgment, and retain the same.
- Establishing recordkeeping procedures. Determine where to store acknowledgments and ensure that employers can readily locate them to demonstrate compliance.
- Training responsible personnel. Ensure that HR and onboarding personnel understand the new requirements and the distinction between reviewing identification documents and retaining original documents.
- Reviewing vendor capabilities. Employers that rely on third-party Form I-9 or onboarding providers should determine whether those providers will offer functionality that addresses the new Colorado requirements.
Employers should work with their HR teams and technology providers now to establish a practical process that documents compliance with HB26-1283.
For questions about this legal alert, please contact a member of Davis Graham’s Employment Group.