The Colorado Legislature and Colorado Department of Labor and Employment, specifically the department’s Division of Labor Standards and Statistics (DLSS), have acted aggressively to reshape rules applying to the employee-employer relationship over the past two years. The year ahead will be no exception.
Let’s look briefly at some of the changes coming in 2022. The DLSS wage protection rules and COMPS order will change significantly. For more information on the regulatory changes discussed here, log on to the DLSS website at https://cdle.colorado.gov/dlss.
Vacation isn’t just vacation. One of the most significant changes in 2022 arises from the Colorado Supreme Court case in Nieto v. Clark’s Market. The Colorado Wage Act was already clear that earned and determinable vacation constitutes wages that must be paid upon separation from employment if paid vacation remains unused. The Supreme Court held that once vacation is accrued, it’s earned and can’t be forfeited. The decision made “use it or lose it” vacation policies illegal. But Colorado courts have never addressed whether vacation pay also includes such paid leave as paid time off or personal days.
The Colorado Wage Protection Rules that took effect Jan. 1 make it clear vacation pay is any “pay for leave, regardless of its label, that is usable at the employee’s discretion … rather than leave usable only upon occurrence of a qualifying event (for example, a medical need, caretaking requirement, bereavement or holiday).”...
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