All Colorado employers are subject to a possible employment verification law compliance audit by the Colorado Department of Labor and Employment (CDLE). Compliance audits may originate from complaints, random selection, or situations where there is reason to believe an employer has not complied. The purpose of the audits is to ensure that employers are fulfilling their obligation to adhere to the employment verification and documentation requirements specified in § 8-2-122, C.R.S. It has been reported that the CDLE is sending audit letters to two hundred employers each month.

The state employment verification laws are different and separate from federal I-9 requirements. For each new employee hired on and after January 1, 2007, Colorado employers must complete affirmation forms and retain copies of the employee’s Form I-9 identity and employment authorization documents. A sample affirmation form may be found at www.colorado.gov/cdle/evr.

The CDLE reportedly wants to educate companies about the state’s employment verification laws. However, companies should also be reminded that the law includes fines of up to five thousand dollars for the first offense and up to twenty-five thousand dollars for subsequent offenses for an employer who, with reckless disregard, fails to submit the required documentation when requested by the CDLE.