7 CCR 1103-6-3 - KJICA: The "Colorado Labor" Requirement and Contractor Obligations

3.1 Under C.R.S. ยง 8-17-101(1), workers meeting the Rule 2.3 definition of "Colorado labor" are required to perform at least eighty percent of the work on public projects undertaken in the state of Colorado and financed in whole or in part by funds of the state of Colorado or its counties, school districts, or municipalities, unless the requirement is waived by the governmental body financing the public works project.
3.2 Compliance with Rule 3.1 is measured over the entirety of the completed project, and is determined using the total taxable wages and fringe benefits paid to workers meeting the Rule 2.3 definition of "Colorado labor," minus any per diem payments made to such workers.
3.3 In order to meet the Rule 2.3 definition of "Colorado labor," workers must provide contractors with adequate proof of residency.
3.3.1 Each contractor shall retain the documentation required under the law for at least ninety days after the completion of the project.
3.3.2 Workers who establish residency during the course of the project also qualify as "Colorado labor" under Rule 2.3.
3.3.3 The Division assesses the acceptability and validity of residency documentation on a case-by-case basis. The Division examines the totality of the circumstances and the evidence provided for each covered worker in the reviewing of residency documentation. Examples of potentially acceptable residency documentation may include, but are not limited to:
(A) valid Colorado's driver's license or state-issued photo identification;
(B) Colorado voter registration;
(C) utility or water bill;
(D) rental lease;
(E) state income tax returns; and/or
(F) documentation reflecting ownership of residential real property in Colorado.
3.3.4 The following documentation must be provided by the contractor to the Division in the event of an investigation:
(A) documentation reflecting the taxable wages and fringe benefits for each covered worker on the public works project; and
(B) the required residency documentation for each covered worker on the public works project.
3.4 The governmental body financing a public works project shall waive the eighty percent requirement if there is reasonable evidence to demonstrate insufficient Colorado labor to perform the work of the project and if compliance with the law would create an undue burden that would substantially prevent a project from proceeding to completion.
3.4.1 A governmental body that allows a waiver shall post notice of the waiver and a justification for the waiver on its website.
3.4.2 A governmental body shall not impose contractual damages on a contractor for a delay in work due to the waiver process.
3.5 All contracts let for public works financed in whole or in part by funds of the state, counties, school districts, or municipalities of the state of Colorado shall contain provisions for the preference in employment of Colorado labor.

Notes

7 CCR 1103-6-3
40 CR 15, August 10, 2017, effective 9/1/2017 45 CR 23, December 10, 2022, effective 1/1/2023 46 CR 23, December 10, 2023, effective 1/1/2024

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