Colorado employers face urgent biometric privacy compliance deadlines

Starting July 1, 2025, Colorado will enforce a new law concerning the collection and handling of biometric information. This legislation mandates that employers and businesses collecting biometric identifiers, such as fingerprints or facial scans from Colorado residents, must establish policies that comply with specific legal requirements. The law extends the Colorado Privacy Act by introducing clear procedures regarding retention schedules, deletion processes, and response protocols for data breaches involving biometric data. Furthermore, companies must provide clear notifications and obtain consent from individuals prior to collecting any biometric information, ensuring transparency about the data’s purpose and usage. To effectively serve customers, businesses must acknowledge that they cannot refuse goods or services to individuals who opt out of providing biometric data unless that data is critical for the service. This underscores a significant shift in how companies engage with consumer data, placing greater emphasis on individual rights and informed consent. If businesses wish to disclose biometric information to third parties, they must secure explicit consent from the affected individuals or align with other specific legal reasons allowing such disclosure. Additionally, individuals will have access rights pertaining to the biometric data collected about them. For those organizations categorized as a “controller” under the broader Colorado Privacy Act, there are stringent requirements to disclose the nature of the biometric data collected, its intended use, the source of the data, and any third parties with whom this data has been shared. However, businesses not subject to the CPA's general thresholds, particularly small employers, are exempt from responding to access requests but must still adhere to all other biometric data stipulations per the law, which aims to protect the residents’ privacy rights. With this legislation soon to take effect, employers in Colorado are urged to review and update their operational protocols, including timekeeping systems and any software or hardware that gathers biometric data. This proactive approach is essential to ensure compliance with the upcoming regulations, highlighting the responsibility of businesses to stay informed and prepared for the impending changes in biometric data privacy laws.