Colorado Vacation Pay Alert

By Andy Volin

Colorado employers should check their vacation policies to make sure they aren’t “use it or lose it” type policies. The Colorado Department of Labor is soon to announce new enforcement provisions that will prohibit any forfeiture of earned vacation pay. We will alert you when the CDOL finalizes this rule. In the meantime, consider alternatives to “use it or lose it” vacation, such as capped vacation (it only accrues up to a certain level, and more is not earned until the employee uses what has already been earned). Another alternative is prospectively ending vacation in favor of starting something similar, such as Paid Time Off (“PTO”), which can be used for sickness, vacation, or any other reason.