Last Friday, Governor Hickenlooper signed House Bill 1292 into law. The new law is known as the “Keep Jobs in Colorado Act” and is intended to spur economic development in the state. Although controversial, the law aims to ensure that more Colorado businesses and workers benefit from state contracts by reducing the outsourcing of public works project such as highway construction projects and penalizing employers who do not hire local workers or who buy foreign-produced materials.
Specifically, the law penalizes companies if their workforce does not consist of at least 80% Colorado labor and encourages the use of locally produced materials by requiring contractors to provide the country of origin for materials such as iron and steel that are used in projects. The Act also includes provisions that require state agencies to weigh overall “best value” not just price when considering bids for state contracts. When considering “best value” agencies are required to consider factors such as the use of Colorado workers and products, wages, health care and other benefits offered to those workers. The Departments of Labor and Employment, and Personal and Administration will oversee enforcement of the new law.
If you would like more information regarding your Colorado business, please contact our Business Law Group partner, David A. Closson at [email protected].