Last Updated on April 22, 2025

Colorado’s Protecting Opportunities and Workers’ Rights (POWR) Act, which became effective on August 7, 2023, continues to have a major impact on workplace compliance standards across the state. Designed to strengthen worker protections, the Act updates how workplace harassment is defined and addressed, introduces detailed recordkeeping obligations, and encourages employers to take a proactive role in preventing misconduct.

If you’re a Colorado employer, now is the time to ensure that your workplace practices and policies are aligned with the POWR Act’s new mandates.

Redefining Workplace Harassment

One of the most significant changes under the POWR Act is the broadening of what constitutes unlawful workplace harassment. The Act removes the previous requirement that harassment must be “severe or pervasive” to be actionable. Now, conduct may be deemed unlawful if:

• It is based on a protected characteristic (such as race, gender, age or the newly added category of marital status).
• The behavior is unwelcome and offensive both subjectively (to the victim) and objectively (to a reasonable person in the same protected class).
• It negatively affects the terms, conditions or privileges of employment.

This change significantly lowers the bar for proving harassment, underscoring the need for strong, proactive employer policies.

Encouraging Preventive Programs and Offering Legal Defense

To help employers address workplace harassment effectively, the POWR Act encourages the creation of a formal harassment prevention “program.” Not only is this a best practice, but it may also provide a legal defense in certain harassment cases.

If a supervisor harasses an employee, and the employer can demonstrate that it had a robust harassment prevention program in place, the employer may assert an affirmative defense to the claim. To be eligible for this defense, the employer must show:

• That it takes prompt, reasonable action to investigate or address allegations of discrimination or unfair practices.
• Appropriate remedial steps are taken when misconduct is substantiated.
• The existence and details of the program are clearly communicated to both supervisory and non-supervisory employees.

Tip for Employers: Your “program” should include a formal policy- often in an employee handbook– and a separate action plan detailing how complaints will be handled, investigated and resolved.

Expanded Recordkeeping Obligations

The POWR Act significantly expands what Colorado employers must track and retain regarding workplace practices. Employers are now required to:

• Maintain a repository of all oral and written complaints related to discrimination, harassment, or unfair employment practices.
• Record and retain the date of the complaint, the names of the individuals involved (if not anonymous), and a summary of the allegations.
• Retain these records for at least five years from the date of the complaint.

This can be accomplished through spreadsheets, physical folders, or HR software—so long as the records are organized, accessible, and accurate.

In addition, employers must maintain other personnel records for five years, including:

• Requests for accommodation.
• Employment applications.
• Documentation related to hiring, promotions, layoffs, terminations, demotions, and compensation.
• Complaints of discrimination.
• Training records.

Compliance Tip: Designate a secure, centralized location—physical or digital—for these records, and ensure relevant managers know where and how to log this information.

Creating a Compliant Harassment Prevention Program

The POWR Act doesn’t prescribe a one-size-fits-all solution, but a strong program generally includes the following components:

1. Clear, Written Policy
   Start with your employee handbook or a standalone document that defines harassment, provides examples, and outlines your complaint procedure.
2. Action Plan for Management
   Outside of the policy, employers should have a written guide for management outlining how to respond to complaints, including:
   • Initial response steps.
   • Options for internal or third-party investigations.
   • Guidelines for issuing appropriate remedial action.
3. Consistent Follow-Through
   When a complaint is made, do not ignore it. Even if a complaint seems minor, initiate your investigation process and document all steps taken.

Compliance Begins with MyHRConcierge

The POWR Act represents a significant shift in how Colorado workplaces must handle discrimination and harassment. Beyond offering greater protection for employees, it creates an opportunity and a legal incentive for employers to put systems in place that foster safe, respectful and equitable work environments.

Compliance isn’t just about avoiding liability- compliance is about creating a blueprint for a workplace culture where all employees can thrive. Does your organization need help building or reviewing your existing policies for compliance? Contact MyHRConcierge’s HR experts for practical support tailored to your business at 855-538-6947 ext 108, ccooley@myhrconcierge.com. Or, schedule a convenient consultation below: