DENVER, CO (July 28, 2026) – After the Colorado General Assembly was named a ‘Lawsuit Inferno’ for the third consecutive year from the American Tort Reform Association in the 2026 edition of its Legislative HeatCheck report, NFIB State Director Michael Smith issued the following statement.

“Excessive litigation poses a real threat to Main Street Coloradans and our state’s economy,” Smith said. “The Colorado General Assembly continues to introduce and pass bills that drive up costs for small business owners, their employees, and consumers. NFIB will continue working with lawmakers to advance reforms that make it easier to do business in Colorado.”

CLICK HERE to view the full report.

Background:

According to the report, the General Assembly passed two bills that were particularly problematic. Thankfully, Governor Polis vetoed both.

• So-Called Arbitration Reform (HB 1236): This bill would have undermined Coloradans’ access to justice by weakening the state’s dispute resolution system. NFIB OPPOSED HB 1236.
• Sweeping Surveillance Data Bill (HB 1210): The bill used broad, unclear definitions and restricts how businesses make everyday pricing and wage decisions. Even more concerning, it created a private right of action, opening the door to costly lawsuits driven by trial attorneys, not regulators. NFIB OPPOSED HB 1210.

Lawmakers introduced roughly 20 bills this year that would have expanded liability for Colorado businesses and workers, according to the Colorado Civil Justice League.

Excessive litigation already costs Colorado families more than $8,500 annually in a “tort tax” for a family of four ($2,135 per person), up from $1,874 in 2024 — a 14% increase. Excessive tort costs also contribute to a loss of 105,746 jobs across the state annually.