Colorado Law Prohibits Retaining Identification Documents and Requires Written Notice to Job Applicants

August 27, 2026

By: Colin A. Walker

House Bill 26-1283 (C.R.S. § 8-2-124.5), “Concerning Protections Relating to the Confiscation of Individuals’ Identification Documents,” makes it a crime to demand, confiscate or retain a job applicant’s government issued identification, with certain exceptions. The concern was that some employers could be holding the IDs of applicants, including immigrants and migrant workers, to intimidate, harass or coerce them. Exceptions include temporarily retaining an individual’s ID for purposes of verifying the individual’s employment eligibility status (by completing a form I-9), retaining a photocopy of the ID for the employer’s records for verification purposes, as required by applicable state or federal law, and as required by a judicial warrant. However, when holding an ID for verification purposes, employers are required to return it as soon as possible and may not hold it for more than 10 hours.

Employers are also required to provide each applicant with written notice of the law at the time they verify the applicant’s eligibility for employment and to get their signature on the notice. Employers must also keep a copy of the notice in their employment records. Colorado employers should incorporate this into their recruiting practices.

There are criminal penalties for wrongfully demanding, confiscating, or retaining an ID. In addition, an aggrieved employee may file a civil action to obtain a court order requiring the employer to return the ID, and for damages. There is no provision for the employee to recover attorneys’ fees or penalties. There are no specific consequences for failing to provide the written notice, but the Colorado Department of Labor and Employment’s general enforcement authority presumably would apply.