The Colorado Legislature adjourned its regular session on May 7, 2025. NFIB State Director Michael Smith held a virtual event to recap the legislative session. During the event, Smith outlined several victories, challenges, and opportunities for reform in future legislative sessions.

CLICK HERE to watch the full virtual event.

Below are a handful of the small business victories, challenges, and opportunities discussed during the event.

VICTORIES

Oftentimes, victory looks like defeating bad bills. NFIB was successful in urging the Governor to veto a Big Labor bill, and in sending pro-small business bills to his desk for signature.

• Defeating SB 5 & Protecting the Labor Peace Act

NFIB successfully opposed Senate Bill 5, which would have dismantled key protections in Colorado’s Labor Peace Act by eliminating the second election required to approve a union agreement. This two-step process has served Colorado well for more than 80 years, ensuring that workers’ voices are clearly heard before unionization efforts move forward. More than 70% of Coloradans support the current two-vote system because it promotes fairness and protects employees from coercion, while also maintaining a competitive business climate. We thank Governor Polis for vetoing the bill.

• Simplifying Colorado’s Sales & Use Tax

As a member of the Simplify Colorado Sales Tax coalition, NFIB successfully advanced two bills to reduce complexity and promote greater confidentiality for taxpayers. Both bills were signed into law by Governor Polis. The first, Senate Bill 18, simplifies the online search process with the Department of Revenue, allowing taxpayers to search by business name, as opposed to license number or federal identification number. The second, Senate Bill 46, protects taxpayer information used for a sales a use tax audit by third-party auditors on behalf of local taxing jurisdictions.

CHALLENGES

Unfortunately, several anti-small business bills were advanced and signed into law by the Governor. While NFIB was able to mitigate the harms of several bad bills, we will continue working with lawmakers on these regulatory issues.

• Imposing Overly Broad Regulations of Employers & Business Owners

House Bill 1001 significantly increases the regulatory burden on employers by expanding wage theft protections to independent contractors and employees. The new law increases fines on employers who misclassify employees as contractors and makes it more difficult for companies to collect attorney fees for frivolous lawsuits. During his testimony before the House Finance Committee, Smith said, “The vast majority of small business owners abide by the law and typically find a way to pay their employees before themselves.”

• Inserting Red Tape on Prices

NFIB opposed several bills, including House Bill 1010 and House Bill 1090, both of which attempt to insert government regulation in how small businesses price their goods and services. Regulatory compliance is already a huge burden on Colorado small business owners.

HB 1010 prohibits price gouging in the sale of necessities. The introduced bill’s definition of “necessities” was broad, leading to ambiguity and confusion among small business owners. Although signed into law, the bill was amended to limit the definition of price gouging and require an emergency declaration from the Governor to be effective.

House Bill 1090 requires merchants to clearly disclose the total price for goods and services, including all fees and charges. Food service establishments must describe any mandatory charges added to a person’s bill. Although the bill was signed into law, the private right of action provision was removed from the bill.

OPPORTUNITIES

We will continue to work with lawmakers to advance pro-small business reforms and send them to the Governor’s desk for signature.

• HB 1300: Reforming the State’s Workers’ Compensation Program

NFIB opposed HB 1300 during the legislative session and urged the Governor to veto. Although the Governor signed it into law, NFIB appreciated his intention to create a working group to address his and the business community’s concerns with HB 1300 before it takes effect in 2028. Colorado’s current workers’ compensation program works really well and is effective for both employers and employees, and we will continue working with lawmakers to ensure it stays that way.

• HB 1282: No Swipe Fees on Sales Taxes and Tips

This bipartisan bill excludes sales tax and tips from costly swipe fees (also known as interchange fees) charged by credit card networks. The bill also caps fees on charitable donations. The bill advanced out of the House, but did not receive enough support in the Senate.

CLICK HERE to watch the full virtual event.

KEY TAKEAWAY: Stay Engaged With Your State Lawmakers

Although not all our priorities made it across the finish line, NFIB fought to block costly mandates, cut state spending, and protect taxpayers’ dollars. We are proud to elevate the voice of small businesses and will continue working with lawmakers to make it easier to do business here in Colorado.