Colorado’s New Identity Document Law Adds Employer Compliance Obligations

Takeaways

• Colorado’s new HB26-1283 prohibits employers from confiscating or improperly retaining government-issued identification documents, subject to limited statutory exceptions.
• The law does not change employers’ federal Form I-9 obligations, but it does require Colorado employers to provide a written notice and obtain a written acknowledgement during the I-9 process.
• Employers should review onboarding, I-9, and document-handling procedures and train HR personnel on the law’s new requirements.

Colorado has enacted House Bill 26-1283, “Protections Regarding Seizures of Identification Documents,” establishing new restrictions on how employers may handle government-issued identification documents. The law takes effect on August 12, 2026 and creates an additional compliance consideration for employers conducting onboarding and employment eligibility verification.

At its core, HB26-1283 prohibits an employer or its agents from demanding, confiscating, retaining, or otherwise requiring employees, applicants, migrant workers, seasonal workers, or other individuals seeking work to surrender a government-issued identification document, subject to limited exceptions established by law. The statute is broadly written and applies to a wide range of employment relationships.

HB26-1283 does not prohibit employers from examining original government-issued identity documents or making copies when permitted by law. Rather, it permits employers to temporarily retain an original government-issued identification document for up to 10 hours to verify employment eligibility and make a copy. Employers may also retain copies of those documents as otherwise permitted by law.

Importantly, there is one additional obligation that will impact employment eligibility verification. When verifying an individual’s employment eligibility, Colorado employers must provide a written notice informing the individual of the statute’s prohibition on confiscating or improperly retaining government-issued identification documents and obtain the individual’s written acknowledgment. This written acknowledgement is then required to be retained in the employee’s employment file. The statute does not require the notice to adhere to an exact format, and Colorado has not published a model notice to date. Employers should work with counsel to develop a compliant notice and acknowledgment for use during employment eligibility verification.

HB26-1283 creates potential criminal liability—a person who knowingly violates the prohibition commits a Class 2 misdemeanor. The law further provides that certain conduct may constitute a bias-motivated crime if, with the requisite intent and based on an individual’s actual or perceived protected characteristics, a person confiscates an identification document or provides or threatens to provide the document to federal immigration authorities, except where otherwise required or permitted by law. Such violations may constitute a Class 1 misdemeanor, and the statute preserves any other remedies otherwise available under law.

Employers should: review onboarding, I-9, and document-handling procedures to ensure original identity documents are returned promptly after lawful verification. Human resources personnel and managers should understand that while federal law requires employers to examine identity and work authorization documentation during the Form I-9 process, the law does not authorize employers to confiscate or indefinitely retain those documents. Employers should ensure they comply with the statute’s notice, acknowledgment, and record-retention requirements whenever verifying an individual’s employment eligibility.

As states continue to enact worker-protection legislation affecting employment authorization verification practices, employers operating in Colorado should ensure that their onboarding procedures, employee communications, and document-handling practices comply with both federal employment verification requirements and Colorado’s new restrictions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.