Under the Colorado Wage and Protection Act of 2014, employers must now pay out any unused, accrued vacation time to employees when they are separated from the company.

While previous rules had been unclear, the new rule specifically prohibits employers from having a "use it or lost it" policy on vacation time. The State of Colorado does not require employers to have a vacation policy, but if one is in place then the rule applies.

ALCC recommends that employers seek review by legal counsel of their current policies regarding vacation time to be sure that they are in compliance with the new rule.