- Employees must receive pay for all vacation hours earned (accrued).
- Vacation policies should be concise and easily understood to prevent misinterpretations.
- Consider setting a cap on how many hours can be earned.
No More “Use-It-or-Lose-It” Vacation Policies for Colorado Employers
The Colorado Department of Labor and Employment (CDLE) indicated it would adopt a tougher enforcement stance against “use-it-or-lose-it” vacation policies.
The CDLE continues its long-standing interpretation that under Colorado law, vacation pay that is earned in accordance with the terms of any agreement is wages owed to the employee upon separation of employment. Employers who have implemented a use-it-or-lose-it policy regarding paid vacation shoul...