DENVER, Colo. (November 11, 2020) — Sherman & Howard member Brooke Colaizzi was quoted in a recent Law Week Colorado article, “State Supreme Court Considers ‘Use-It-Or-Lose-It’ Vacation Policies” regarding the Colorado Supreme Court case Nieto v. Clark’s Market.

The article addresses previous conflicting guidance to employers from the Colorado Department of Labor and Employment (“CDLE”) regarding the usage of “use-it-or-lose-it” vacation policies. The Supreme Court “will consider whether the Colorado Wage and Claim Act allows an employment agreement to forfeit an employee’s accrued but unused vacation pay upon separation of employment.”

Colaizzi says the Nieto decision provided her clients flexibility with their vacation policies. However, she remains very cautious when advising employers because she is not confident the Court of Appeals’ reasoning will hold up.

“The decision itself seemed directly at odds with the way the CDLE has always interpreted the Wage Act and our understanding of what happens with vacation time.”

The full article was published in the November 9, 2020 edition of Law Week Colorado (subscription required).