Summary

License to Work

The data and information here come from IJ’s License to Work report, released in November 2017.

Colorado licenses 34 of the 102 lower-income occupations studied here, and its laws are the 36th most burdensome. On average, Colorado’s barriers to entry are $344 in fees, 260 days lost to education and experience, and roughly two exams. Because Colorado licenses fewer occupations than most states, it ranks as only the 47th most broadly and onerously licensed.

Despite this relatively good ranking, Colorado still has room for improvement. For example, it has one of the most burdensome licenses for bill collection agencies, requiring $1,500 in fees and 730 days—two years—of experience before an agency can open for business. By comparison, 20 states do not even license bill collection agencies, and those that do require an average of $551 in fees and 159 days of education and experience.

Colorado also imposes restrictions on barbers and cosmetologists that are disproportionately burdensome compared to those for occupations that may pose greater risks to the public. Aspiring barbers must pay a $155 fee and complete 1,500 hours (around 350 days) of education, while would-be cosmetologists must pay a $177 fee and complete 1,800 hours (roughly 420 days) of education. Both must also pass two exams. EMTs, on the other hand, must only pay a $98 fee, demonstrate 150 hours (about 35 days) of education and pass two exams. Colorado should reduce, if not repeal, its inconsistent or irrational burdens for lower-income workers, or—if government regulation is necessary—replace them with less restrictive regulatory alternatives.