summary
Introduced
02/18/2026
02/18/2026
In Committee
02/18/2026
02/18/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
The bill: ! Prohibits a provision in an arbitration agreement that waives a party's ability to participate in a representative action except as preempted by federal law and disallows the waiver of this prohibition; ! Prohibits a provision in an arbitration agreement that requires an employee to an employer and employee contract or a consumer to a merchant and consumer contract to pay fees that substantially exceed the costs required to file a claim in state or federal court, except as preempted by federal law, and disallows the waiver of this prohibition; ! Prohibits an individual from serving as an arbitrator if the individual has a rule, policy, procedure, or demonstrated pattern of conduct that discriminates or prevents, or has the effect of discriminating or preventing, a certain party or type of party from asserting their rights or prevailing in arbitration or that discriminates against an attorney; and ! Requires an employer or merchant to fully comply with requirements of a record of an award, within 30 days after the date of the record of an award, or be liable for additional damages caused by their failure to comply. Under current law, exemplary damages are prohibited in arbitration proceedings. The bill repeals this prohibition.
AI Summary
This bill aims to reform arbitration processes by prohibiting clauses in arbitration agreements that prevent individuals from participating in representative actions, such as class actions or collective actions, and also disallows requiring employees or consumers to pay filing fees and costs that are significantly higher than those for state or federal court, with exceptions for federal law. It further stipulates that individuals or organizations with a history of discriminatory practices or policies that hinder parties or their attorneys from asserting their rights or prevailing in arbitration are ineligible to serve as arbitrators. Additionally, employers and merchants must fully comply with the requirements for recording arbitration awards within 30 days, or face liability for additional damages caused by their failure, and the bill repeals the current prohibition on exemplary damages in arbitration proceedings, allowing them to be awarded.
Committee Categories
Justice
Sponsors (4)
Last Action
Introduced In House - Assigned to Judiciary (on 02/18/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://leg.colorado.gov/bills/HB26-1236 |
| BillText | https://leg.colorado.gov/bill_files/112168/download |
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