Colorado employers may see increased unemployment insurance premiums in 2017. Throughout 2016, Colorado Department of Labor and Employment (“CDLE”) Executive Director Ellen Golombek has met with business organizations and labor representatives to discuss a potential legislative proposal during Colorado’s 2017 legislative session that would increase the chargeable wage limits per employee from the current limit of $12,200.00, to $16,000.00 in 2018, $20,000.00 in 2019, and $24,000.00 by 2020.
If enacted, the proposal would increase unemployment insurance premiums for Colorado employers by approximately thirty (30) percent on average. On November 17, 2016, Ms. Golombek and other representatives from the CDLE will meet with the Colorado Association of Commerce & Industry (“CACI”) to discuss the proposed legislation. Campbell Litigation, P.C.’s Stacey Campbell—Chair of CACI’s Labor and Employment Council—will chair the CACI meeting. Colorado employers wishing to get more information and/or voice their concerns about the potential proposal may attend the CACI meeting, which will be held at CACI’s office at 1600 Broadway, Suite 1000, Denver, Colorado 80202 from 12:00 p.m. to 1:15 pm. MDT.
Campbell Litigation will continue to monitor the status of this proposed legislation.
 Colorado Department of Labor & Employment, Premium Rates (available at: https://www.colorado.gov/pacific/cdle/premium-rates) (last accessed Oct. 13, 2016).
 Colorado employers pay a premium rate which is multiplied by the chargeable wage limit for each employee. For example, if an employer has a three (3) percent premium rate, they would pay three (3) percent for each dollar each employee earned, up to the $12,200 chargeable wage limit (or up to $366 per employee annually). If the chargeable wage limit increases to $24,000, the employer would pay three (3) percent for each dollar up to $24,000 (or up to $720 per employee annually, an increase of approximately 97 percent). For a large company with 100 employees earning $24,000 or more, the proposal would lead to an increase in unemployment insurance premiums of approximately $35,400 annually.