History – The Corporate Transparency Act (CTA), enacted in 2021, requires certain small business owners to submit personal information—such as photo identification and residential addresses—to the Financial Crimes Enforcement Network (FinCEN). The law is intended to curb the misuse of anonymous shell companies for illicit activities.
However, the CTA has encountered legal challenges. In December 2024, a federal judge in Texas issued a nationwide preliminary injunction, temporarily blocking its enforcement. The U.S. Court of Appeals for the Fifth Circuit initially overturned this ruling but later reinstated the injunction, once again pausing the law’s implementation.
Present – On January 23, 2025, the U.S. Supreme Court lifted the nationwide injunction, granting FinCEN the authority to enforce the CTA’s reporting requirements. Consequently, businesses are now obligated to comply with the provisions.
Despite this ruling, the CTA’s future remains uncertain amid continued legal disputes and political opposition. A group of Republican lawmakers has reintroduced legislation to repeal the CTA, arguing that it constitutes government overreach and threatens small business owners’ privacy.
Future – Given the shifting legal landscape, businesses should stay updated on the CTA’s status and ensure compliance to avoid potential penalties.
On January 21, 2025, President Trump issued an executive order titled "Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government."
This directive requires federal agencies to recognize only two sexes, male and female, based on biological criteria. While primarily affecting federal entities, the order reflects a broader policy shift that may impact private sector practices, particularly for employers with federal contracts or those subject to federal regulations. Employers are advised to assess their policies on gender identity and expression to ensure alignment with evolving federal standards.
On January 21, 2025, President Trump signed the "Ending Illegal Discrimination and Restoring Merit-Based Opportunity" executive order, effectively revoking Executive Order 11246. Originally enacted in 1965, EO 11246 prohibited federal contractors from engaging in employment discrimination based on race, color, religion, sex, sexual orientation, gender identity, or national origin and required affirmative action to promote equal employment opportunities. With its revocation, federal contractors are no longer obligated to implement affirmative action measures.
Affirmative action obligations for federal contracts under the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) and the Rehabilitation Act remain in place, so federal contractors must still provide affirmative action programs for protected veterans and individuals with disabilities.
Impact on DEI Programs in the Private Sector
Although this executive order directly affects federal contractors, it also signals a broader push against DEI programs in the private sector. The order calls on federal agencies to investigate and address DEI initiatives that could be considered discriminatory or preferential. Within 120 days, the Attorney General is required to submit a report outlining strategies for enforcing civil rights laws and curbing potentially unlawful DEI practices in private organizations.
Considerations for Private Employers
While the order does not impose immediate new legal requirements on private employers, it introduces heightened scrutiny of workplace DEI programs. Employers should assess their existing initiatives to ensure compliance with federal anti-discrimination laws. Consulting legal counsel may be prudent to evaluate current DEI policies and prepare for potential regulatory changes or enforcement actions.
Key Takeaways
Though the direct legal impact on private businesses may be limited at this time, this shift in federal policy suggests increasing oversight of workplace diversity programs. Employers should stay informed, regularly review their policies, and be proactive in adapting to evolving federal guidelines.
On January 1, 2025, the minimum wage rates in Colorado will increase as follows.
Colorado’s minimum wage will increase to $14.81 per hour. The minimum wage for tipped employees will increase to $11.79.
The minimum salary for exempt executive, administrative, or professional employees will increase to $1,086.25 per week, or
$56,485 per year. The minimum annual salary to use the highly compensated employee exemption will increase to $127,091 per year. The minimum rate for exempt computer employees who are paid on an hourly basis will be $34.07 per hour.
The 2025 Pay CALC Order was approved by the Colorado Attorney General on November 25, 2024.
Denver’s city and county minimum wage will increase to $18.81 per hour. The minimum base wage for tipped employees will increase to $15.79 per hour.
City and County of Denver revised its municipal code in November 2019.
Edgewater’s minimum wage will increase to $16.52 per hour. The minimum base wage for tipped employees will increase to
$13.50 per hour.
The Edgewater City Council approved Ordinance 2023-07 on May 2, 2023.
Unincorporated Boulder County’s minimum wage will increase to $16.57 per hour. The minimum base wage for tipped employees will increase to $13.55 per hour. For a list of unincorporated areas that the minimum wage law applies to, please see Boulder County’s website.
Just a friendly reminder that in Colorado, employers must provide employees with an annual written notice regarding the availability of federal and state Earned Income Tax Credits (EITC) and Child Tax Credits (CTC). This requirement, established under House Bill 23-1006, applies to tax years beginning on or after January 1, 2023.
Employers should ensure compliance with these requirements to help employees access valuable tax credits. You can access the required notice by clicking here.
SB25-005 – Worker Protection Collective Bargaining
SB25-074 – Highly Specialized Employment Leave Protection Exemption
SB25-083 – Limitations on Restrictive Employment Agreements
HB25-1001 – Enforcement Wage Hour Laws
HB25-1078 – Forestry & Firefighter Workforce & Education
Colorado employers should pay close attention to proposed legislation because new laws and regulations can significantly impact their operations, workforce, and financial obligations. Compliance with updated laws is essential to avoid legal risks and potential fines, while changes in wages, benefits, or tax policies can directly affect business costs.
Employers can actively monitor legislation through the Colorado General Assembly website, business associations, and industry groups. Employers can directly contact legislators through emails, phone calls, or meetings to express concerns or support for proposed laws. Providing testimony, joining advocacy groups, and submitting public comments effectively influence legislation. Networking with business leaders strengthens advocacy, while election engagement supports favorable policies.
2/1 – Deadline for Posting OSHA Form 300A
2/28 – Forms 1094-B, 1095-B, 1094-C and 1095-C Filing Deadline (paper filers)
3/2 – Deadline to Submit Form 300A Data to OSHA
3/3 – Medicare Part D Creditable Coverage Disclosure Deadline (Calendar Year Plans Only)
3/31 – Forms 1094-B, 1095-B, 1094-C and 1095-C Filing Deadline (electronic filers)
4/30 – Form 941 Filing Deadline
4/30 – Remove OSHA Form 300A
Lighthouse HR Support (LHRS) provides practical human resource information and guidance based upon our knowledge and experience in the industry and with our clients. LHRS services are not intended to be a substitute for legal advice. LHRS services are designed to provide general information to human resources and/or business professionals regarding human resource concerns commonly encountered. Given the changing nature of federal, state and local legislation and the changing nature of court decisions, LHRS cannot and will not guarantee that the information is completely current or accurate. LHRS services do not include or constitute legal, business, international, regulatory, insurance, tax or financial advice. Use of our services, whether by phone, email or in person shall indicate your acceptance of this knowledge.
