Privacy & Data Protection in Employee Records

What Colorado Employers Need to Know

Managing employee data isn’t just paperwork anymore, it’s a serious responsibility.

From contact details and performance reviews to biometric scans and medical information, employers handle a great deal of sensitive data. If you’re based in Colorado, there are state-specific rules that govern how you collect, store, and share that information.

Disclaimer: We’re not attorneys, and this post isn’t legal advice. It’s meant to help you understand the general requirements under Colorado law so you can make informed decisions.

What Colorado Employers Need to Know About Employee Privacy, Record Access, and Data Protection

1. C.R.S. § 8-2-129 — Personnel File Access Law

This law gives employees the right to inspect and copy parts of their personnel file.

Key points:

• Applies to current and certain former employees

• Allows one review per year for current employees, and a one-time review after separation

• Lets employers withhold specific records, such as active investigations or separately stored medical files

2. Colorado Privacy Act (CPA)

The CPA, effective July 2023, protects consumer data—but with limited application for employers.

Key points:

• Most employee records are excluded from CPA protections

• However, biometric data (like fingerprints or facial recognition) is now regulated

3. Biometric Data Amendments

If your company uses biometric tools (for timekeeping, building access, or security), you must follow stricter rules.

Employers must:

• Collect biometric data only for a valid reason (e.g., time clock or access control)

• Disclose what data is collected, why, how long it’s stored, and who it’s shared with

• Avoid using biometric data for tracking locations or monitoring devices

• Delete biometric data within 24 months or once the original purpose is fulfilled

What Counts as a “Personnel File”?

Under C.R.S. § 8-2-129, a personnel file includes documents used to evaluate or affect an employee’s:

• Hiring

• Promotion

• Compensation

• Disciplinary action

• Termination

Not included in the personnel file:

• Medical records and I-9s (must be stored separately)

• Confidential references from previous employers

• Active investigations or regulatory reports

• Confidential complaints

Your Responsibilities as an Employer

You Must:

• Allow current employees to inspect and copy their personnel file once per year

• Allow former employees a one-time review after separation

• Provide inspection at your office at a mutually convenient time

• Allow copying (you may charge a reasonable fee)

You’re Not Required To:

• Give access to excluded records (e.g., active investigations)

• Create new documents to fulfill an access request

How to Stay Compliant

1. Create a clear file access policy: Outline how requests should be made and how your HR team will respond.

2. Segment sensitive data: Store medical files, I-9s, and investigation records in separate folders.

3. Train your HR staff: Consistency matters. Everyone should understand what can and cannot be shared.

4. Be transparent about biometric data: If you collect it, explain it. Document your purpose, retention timeline, and access controls.

5. Delete what you no longer need: Especially biometric data—don’t retain it beyond legal requirements.

Why It Matters

Compliance isn’t just about avoiding fines, it’s about building trust.

Employees want to know their personal information is handled responsibly. Being transparent about access and protections fosters a respectful, secure workplace—and helps prevent those “Can I see my file?” conversations from becoming legal headaches.

Final Thought

Privacy laws can feel overwhelming, but a little preparation goes a long way. With the right systems in place, you can protect both your business and your employees’ confidence that their data is safe.

Need help creating a compliant personnel file policy or reviewing your current practices?Reach out today! We’ll help you simplify the process and stay compliant.