Colorado Arbitration Reform Legislation Vetoed

The Colorado General Assembly attempted to reform arbitration laws during its 2026 legislative session by passing HB26-1236. The Governor vetoed the bill, however, leaving the existing arbitration act in place. This article discusses the proposed bill, the reasons the Governor vetoed it, and what happens next.

HB26-1236 – Arbitration Reform

The General Assembly passed HB26-1236, which would have significantly amended the Colorado Revised Uniform Arbitration Act (CRUAA). Among other things, the new law prohibited arbitration agreements in employment and consumer contracts from requiring the employee or consumer to pay fees substantially exceeding the cost to file a claim in state or federal court. HB26-1236 also prohibited an individual from serving as an arbitrator if the individual has a rule, policy, procedure, demonstrated pattern of conduct that discriminates, or prevents, or has the effect of preventing, a certain party, type of party, or attorney from asserting the party’s right in arbitration or bringing a claim in arbitration. The new law also required a party to fully comply with an award within 120 days after the date of the award or be liable for additional damages caused by a failure to comply.

However, the Governor VETOED HB-1236 based on concerns that the bill would make it more difficult for parties to use arbitration and would complicate the resolution of legal disputes in a timely and cost-effective manner.

What Next?

Since the Governor vetoed HB26-1236, existing law under CRUAA continues to apply as written, but parties and neutrals should stay informed as it remains to be seen whether lawmakers will propose alternate legislation in 2027.

Our Team

BHGR’s Litigation Group represents clients in local, national, and international arbitration forums, including those conducted by the Judicial Arbiter Group, JAMS, American Arbitration Association, International Chamber of Commerce, and International Center for Dispute Resolution. Our attorneys are adept at preparing arbitration filings, representing our clients in arbitration hearings, and confirming or appealing arbitration awards in state and federal court. BHGR also has an Alternative Dispute Resolution Group which offers arbitration, mediation, mediation-arbitration, and neutral fact-finding services.