Colorado’s New Law Imposes Strict Limits On Employer Retention Of I-9 Identification Documents

On June 3, 2026, Governor Polis signed into law HB26-1283, which establishes strict restrictions on how employers may handle government-issued identification documents belonging to applicants and employees—including migrant and seasonal workers—during the employment eligibility verification (I-9) process. Employers operating in Colorado should act now to review their onboarding procedures and ensure compliance.

Key Takeaways for Employers

• No Retention of Original IDs Beyond What Is Necessary. Employers may temporarily retain a government-issued identification document only for the time reasonably necessary to complete employment eligibility verification and make required copies—but never for more than 10 hours. After that, the original document must be returned.
• Limited Exceptions Apply. Retention is permitted only for: (1) employment eligibility verification (the I-9 process); (2) document retention required or permitted by state or federal law; or (3) retention pursuant to a signed judicial warrant.
• New Written Notice Requirement. During the I-9 process, employers must provide applicants and employees with a written notice explaining their rights under the new law. The notice must be in English and, if the employer knows the individual’s primary language is not English, in that primary language as well.
• Signed Acknowledgment Required. Employers must obtain a signed acknowledgment of the notice from the applicant or employee. Both the notice and the acknowledgment must be retained with the individual’s employment records.
• Third-Party Vendors and Staffing Agencies. Employers using third-party onboarding vendors, staffing agencies, or recruiters should confirm that those providers have updated their procedures to comply with the new requirements.
• Significant Penalties for Non-Compliance. Violations of the new law may result in both criminal penalties and civil liability.

Recommended Compliance Steps

• Review I-9 and onboarding procedures to ensure identification documents are returned promptly and never retained longer than the permitted 10-hour window.
• Incorporate the required written notice and signed acknowledgment into your onboarding workflow, including translated versions where required.
• Confirm that staffing agencies, recruiters, and other onboarding partners are following the same procedures.

While many employers already return original identification documents promptly after completing the I-9 process, this new law formalizes the practice and adds documentation obligations that require affirmative steps. Employers with operations in Colorado should consult with employment counsel to assess their current practices and implement the necessary changes before any enforcement action occurs.

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.