Employers dodge powerful bullet: POWR Act's potential ramifications

Employment law in Colorado has undergone a sea change in the past year, from mandatory sick leave, to new promotional-opportunity posting requirements, to stricter whistleblower laws, and so on. But one bill from the last legislative session that didn't become law (but could have had a tremendous impact on employers) is the Protecting Opportunities and Workers' Rights (POWR) Act. The legislation would have dramatically increased employers' exposure to discrimination and harassment claims under the Colorado Anti-Discrimination Act (CADA). While the bill stalled in committee, it could potentially return in the future in one form or another.

History of POWR Act

The POWR Act (Senate Bill 21-176) was introduced during the General Assembly's 2021 regular session in early March and was passed by the senate. The bill went before the House Judiciary Committee, where it was substantially amended, but it ultimately failed to leave the Senate Judiciary Committee and essentially "died" at that point.

In the next legislative session, however, it seems likely the Act's house sponsors will propose a revised version.

Expanded rights and remedies

The POWR Act, if passed as revised, would have expanded employees' rights and remedies under the CADA to unprecedented levels:

First, as of today, the CADA (like Title VII of the Civil Rights Act of 1964) covers only persons in an employee-employer relationship, not independent contractors. The POWR Act would have expanded the law's coverage to include independent contractors, subcontractors, and their own employees.