Denver auditor gains power for wage theft protections

The Denver City Council on Monday unanimously voted to improve the city auditor’s power to investigate wage theft cases.

In other action, a councilwoman from one of Denver’s most diverse council districts voted against a pair of bills that would provide money for sheltering illegal immigrants in Denver.

The “wage protection bill,” passed more than a year ago, required a vote on an amendment brought forward by Councilwoman Sarah Parady. As amended, Auditor Timothy O’Brien now has the authority to issue “investigatory subpoenas” to businesses that have allegedly committed pay violations.

Several council members claimed Denver has the “gold standard” in wage theft protections, acknowledging that in the past it had been the epicenter of violations. Indeed, in January of this year, O’Brien found certain gig companies had violated city protections and ordered them to pay $1 million. In November of last year, the auditor found a record $2 million in unpaid wages, ordering those amounts be paid to the affected workers.

In a May 2022 report, the Colorado Fiscal Institute estimated that, statewide, there was about $728 million in wage theft annually. This results in about $45 million in lost tax revenue, according to the report. In Denver, the city’s labor department has managed to increase its recovery of wages by about 24 times in nine years, ballooning from $84,232 in 2015 to just over $2 million last year, according to an annual wage theft report.

While the bill and associated amendment had broad support across the council, Councilwoman Amanda Sawyer was deeply disturbed by the fact an amendment was needed at all.

“I want to be excited about this, but it’s really hard for me to be excited about this because it’s disgusting that we have to (make the amendment) in the first place,” she said. “No matter how hard we try to come up with legislative fixes to these challenges, there are still employers out there who just don’t care… and who are not at all interested in paying workers for the work they have already done.”

In her explanation of the amendment, Parady highlighted the powers that existed outside of the city council.

“Good policy comes from outside the building. We wouldn’t have gotten this done tonight without all of the advocacy,” she said. “The room is full of people who took time out of their day to advocate for the bill.”

Parady pointed out members of several different unions who were present for the session. As it was last year, the city council was applauded after passing the measure.

The bill passed unanimously.

Also on the council’s plate were two budget amendments in final consideration. Both were called out for questions by Councilwoman Flor Alvidrez. Her concern was where the money would end up going, saying she did not know how the city planned to spend $70 million.

“I know about $4 million covers the Employment Program and the six month rental program and $4 million covers a shelter which is being purchased in District 7,” she said. “That leaves $70 million unaccounted for and I don’t quite know where it has been spent.”

Alvidrez did not support the bills, which will help fund Mayor Mike Johnston’s $89.9 million plan to shelter and serve immigrants, many of whom came to the United States illegally. However, Department of Finance officials hope it won’t spend all $89.9 million and said that is just what it estimated it will take to fund Johnston’s programs.

Earlier this year, Denver announced it would offer more services to fewer people and discouraged immigrants at the border from coming to Denver.

The Council approved the bills 12-1.


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