Unused vacation must be paid out upon separation, court says |
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Written by Colorado Green NOW |
Tuesday, June 22, 2021 03:00 AM |
A recent Colorado Supreme Court opinion has determined that employers may not include a “use it or lose it” policy and must pay out unused accrued vacation pay when an employee leaves a job. The decision overturned previous lower court decisions. Regardless of restrictive language included in employee handbooks, the Supreme Court stated that “although the CWCA [Colorado Wage Claim Act] does not create an automatic right to vacation pay, when an employer chooses to provide such pay, it cannot be forfeited once earned by the employee.” Read the full CO Supreme Court opinion. Read more in this issue of Colorado Green NOW: |