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Colorado Updates
Jun 23, 2021 4:13:00 PM
Colorado Supreme Court Clarifies Vacation Pay Obligations
As noted in a previous FrankCrum news alert, the Colorado Supreme Court issued its long-awaited decision that an employer must pay an employee’s earned but unused vacation pay upon separation of employment. This decision brought clarity to how vacation policies are addressed under the Colorado Wage Claim Act. Colorado employers do not have to provide vacation pay but if they choose to do so it cannot be forfeited once earned and must be paid out when the employee leaves the company.
Employers should review their policies and make any needed changes so that vacation pay is not forfeited either at year end (“use it or lose it”) or at termination of employment.
Last year, Colorado enacted the Healthy Families and Workplaces Act requiring employers to provide sick leave. Under that law, sick leave does not need to be paid out at termination, and nothing in the Supreme Court’s decision changes that.
Reach out to your FrankAdvice HR Consultant as needed.
Previous Updates
Healthy Families and Workplaces Act
The Healthy Families and Workplaces Act (HFWA) requires employers with 16 or more employees to provide eligible employees with paid sick and safe leave beginning January 1, 2021. The HFWA applies to smaller employers beginning January 1, 2022.
Employees accrue at least one hour of paid sick and safe time for every 30 hours worked, up to 48 hours each year. An employee may carry over up to 48 hours of accrued, unused paid sick and safe time to the next year. However, an employer is not required to allow an employee to use more than 48 hours of paid sick and safe time in a year.
https://leg.colorado.gov/bills/sb20-205
Unemployment Insurance Notice
In addition to posting the Colorado Employment Security Act Poster (click here), an employer must also provide notice to every worker upon separation of employment. This notice must include:
- A statement that unemployment insurance benefits are available to unemployed workers who meet the eligibility requirements of Colorado law;
- Contact information to file a claim;
- Information the worker will need to file a claim; and
- Contact information to inquire about the status of their claim after it is filed.
