Skip to content

Colorado Named ‘Lawsuit Inferno’ in Annual Legislative HeatCheck Report

Colorado Named ‘Lawsuit Inferno’ in Annual Legislative HeatCheck Report

July 29, 2025

Colorado named a “Lawsuit Inferno” for the second consecutive year in the American Tort Reform Association’s latest Legislative HeatCheck report.

DENVER (July 29, 2025) – With Colorado named a “Lawsuit Inferno” for the second consecutive year in the American Tort Reform Association’s latest Legislative HeatCheck report, NFIB State Director Michael Smith called on lawmakers to prioritize civil justice reform that benefits hardworking Coloradans.

“When lawmakers make it easier and more lucrative to sue, small business owners and their employees pay the price. Lawsuit abuse doesn’t just stifle our state’s economy but results in nearly 100,000 jobs lost in the state per year. Our Main Street businesses want to create good-paying jobs and meet their customers’ needs, but every dollar spent fighting a frivolous lawsuit is one less dollar going toward operating their business and investing in their community. It’s time for lawmakers to stand up for small businesses and the hardworking Coloradans they employ and promote a more balanced civil justice system here in our state.”

Background:

According to the Legislative HeatCheck report:

  • Colorado lawmakers introduced 45 bills that created new private lawsuits or expanded liability under existing laws this year, with more than half of those becoming law, according to the Colorado Civil Justice League.
  • Among the most concerning new laws are H.B. 1239 and H.B. 1001.
    • H.B. 1239 will likely result in more lawsuit abuse and burden small businesses, all while doing little to improve accessibility for people with disabilities.
    • H.B. 1001 will likely increase litigation against small and family-owned businesses by employees suing under wage and hour laws.
  • Coloradans already pay the 7th-most expensive “tort tax” in the nation at nearly $8,000 annually.
Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Receive our newsletter and email notification
Knowledge is power. Let us help you stay informed with breaking legislative news, regulatory updates, business tips, and more.

Related Articles

Legal series folder
March 6, 2026
NFIB Asks Colorado Supreme Court to Protect Small Businesses from Lawsuit Abuse
NFIB filed an amicus brief in the case Public Service of Colorado v. Ross regarding the responsibility of small businesses for damages in wrongful death cases.
Read More
March 5, 2026
NFIB Jobs Report: Employment Index Ticks Up
More small businesses are raising compensation
Read More
March 5, 2026
Colorado Small Business Community Applauds Effort to Eliminate Credit Card Swipe Fees on Sales Taxes
NFIB supports SB 134, which would exclude sales tax from costly swipe fees (also known as interchange fees) charged by credit card networks.
Read More
Mallet legal code and scales of justice
March 4, 2026
NFIB Praises Committee Passage of Reasonable Standard for Premises Liability
HB 4582 provides small businesses with a clear and fair standard for property owners
Read More

© 2001 - 2026 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy Policy | Accessibility