Colorado Law Alert

January 5, 2016

in Compliance

Colorado 2016 Law Updates

Text Effective January 1, 2016, Colorado’s minimum wage will increase from $8.23 to $8.31 per hour. The minimum wage for tipped employees will increase from $5.21 to $5.29 per hour. The state minimum wage is adjusted annually for inflation based on the Consumer Price Index for all Urban Consumers in the Denver-Boulder-Greeley combined metropolitan area.

We recommend that you review the pay rates of your employees to ensure compliance with the new minimum wage rates. Additionally, you should update any posters notifying employees of the minimum wage.

Also of note, the Colorado Department of Labor (CDOL) recently clarified that employers can have “use-it-or-lose-it” policies in their vacation agreements, provided the following are in place:

  • Any such policy should be included in the terms of an agreement between the employer and employee.
  • A “use-it-or-lose-it” policy may not deprive an employee of earned vacation time and/or the wages associated with that time.
  • Any vacation pay that is “earned and determinable” must be paid upon separation of employment.
  • The terms of an agreement between the employer and employee will dictate when vacation pay is earned.

We recommend that employers who have “use-it-or-lose-it” policies review them in light of the CDOL guidance.


The content in this section is courtesy of:   Transcend Technologies Group, Inc., 9401 E. Stockton Blvd Ste. 240, Elk Grove, CA 95624

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