Colorado Protects Workers from Employer ID Confiscation

On June 4, 2026, Colorado enacted House Bill 26-1283, which limits when employers can collect or keep workers’ government-issued identification documents.

With limited exceptions, employers may not require employees, applicants, or other workers to provide or leave their identification documents with the employer.

This update applies broadly to Colorado employers and their agents, and covers applicants, employees, and individuals performing work in any capacity. The bill became law on June 4, 2026.

What Employers Need to Do

• Ensure no practice requires employees, applicants, or contractors to surrender original identification documents beyond what the law allows.

• When completing federal employment eligibility verification, retain original IDs only as long as necessary (no more than 10 hours) and return them promptly.

• When temporarily retaining an identification document for federal employment eligibility verification, provide the required written notice, obtain the worker’s acknowledgment, and retain that record as required. Official legislative materials indicate the notice must be in English and, in some circumstances, in additional languages.

• Remove any policy that allows supervisors, recruiters, security staff, or third-party agents to hold worker IDs. Train all parties involved in the new prohibition.

• Confirm that contractors and staffing partners understand the law applies to employers’ agents, not just direct employees.

Overview

Colorado House Bill 26-1283 establishes statewide protections that limit when employers can take or keep government-issued identification documents.

Key Elements:

• Employers and their agents may not demand, seize, or retain a worker’s original government-issued ID as a condition of employment or work.
• The law applies to employees, job applicants, contractors, and migrant or seasonal workers, regardless of immigration or employment status. 

Limited Exceptions:

• Temporary retention for federal employment eligibility verification is allowed, with strict time limits.
• Retention is also permitted if explicitly required by law or court order.
• Employers must provide written notice explaining ID protections at the time of verification and retain proof of acknowledgment.
• The law took effect immediately upon enactment in 2026 under a safety clause.

Why This Matters

Colorado now restricts employers and their agents from holding workers’ government-issued identification documents except in limited circumstances.

For employers, the biggest impact is operational: onboarding, verification, and security practices must be reviewed to ensure identification documents are handled only as the law allows.

The change also raises compliance risk because violations may result in criminal penalties and, in some circumstances, additional civil exposure.

Key Risks for Employers

• Knowingly confiscating or retaining a worker’s ID without lawful authority is a Class 2 misdemeanor, with increased penalties for bias-motivated conduct.

• Workers may seek immediate return of their ID and pursue civil damages.

• Using identification documents to threaten or intimidate workers, including immigration-related threats, can result in more serious penalties.

Source References

• CO HB1283 – Protections Regarding Seizures of Identification Documents

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