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What We’re Watching: SB 5

 

It’s the first week of the 2025 state legislative session and major developments for the business community are already underway. As the Colorado Chamber does every legislative session, we are beginning our weekly “What We’re Watching” updates to highlight bills that are important for the business community to follow.

This week, we’re focusing on one of the first bills out of the gate on day one of session – Senate Bill 5. The Chamber became aware that this proposal was coming back in November and took an opposed position on the bill this week after it was filed.

As introduced, this legislation would amend Colorado’s long-standing Labor Peace Act, which regulates collective bargaining agreements between employees and employers. Colorado’s system is unique and unlike any other state, requiring a secondary vote of 75% to approve mandating union fees, which are directly deducted from employee paychecks. This bill would remove that second election. Based on member feedback, if SB 5 is passed as is, there is a major concern with shifting the balance of power in the workplace and removing a requirement that’s been in place for decades.

In a statement on Wednesday following the introduction of SB 5, Colorado Chamber President and CEO Loren Furman said the following:

“The Colorado Chamber has a long history of collaboration with labor groups. We support protections for employees who choose not to join a union, and no one should be forced to pay dues into an organization that they do not support. Colorado’s current labor laws strike a unique balance between unions, employees and the business community. Protecting this balance is a top priority for the Chamber as we review the proposal introduced today. We look forward to providing the perspective of the business community to find common ground.”

The Colorado Chamber is actively working with leadership, business and labor groups to explore whether a consensus can be reached. Our priority is to preserve balance, protect employees who choose not to join a union, and ensure any changes to the Labor Peace Act don’t jeopardize Colorado’s competitiveness.

This bill is moving very quickly and is expected to reach its first committee within the next two weeks. The Colorado Chamber will continue to update members with important updates and any future action alerts. View the draft bill as introduced by clicking here.