Payroll News

Earned Vacation Pay Is Owed on Separation, Colorado Agency Says

Nov. 14, 2019, 9:38 PM

Vacation pay that is earned by Colorado employees under the terms of an employer-employee agreement must be paid at separation from employment under permanent rules that were adopted by the Colorado Department of Labor and Employment.

The rules, which were adopted Oct. 25, are to take effect Dec. 15.

Employers must pay accrued vacation pay at the time of separation even if an employer-employee agreement exists that says that vacation pay is to be forfeited, an updated Statement of Basis and Purpose.

The requirement does not allow employers to forfeit earned vacation pay at separation, but does allow agreements...

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