Vacation Labor Laws in Colorado
Colorado labor laws strictly enforce provisions concerning wages but are silent on the issue of vacation time and similar perks for employees. The federal government and state governments tend to view vacation time as a fringe benefit, leaving it to the employer's discretion rather than enforcing it as a legal right of employees.
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Basics
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The Colorado Department of Labor and Employment states that providing vacation time is not mandatory for employers. No part of Colorado's labor code prevents an employer from scheduling employees for as many or as few hours per day and week as the employer chooses. The employer simply must pay agreed-upon wages for all hours an employee works, including overtime wages.
Considerations
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Many employers offer vacation time to employees to help morale. If an employer establishes a policy of offering vacation time, state labor regulations require the employer to follow that policy until notifying employees of changes; failure to do so is a violation of state labor regulations. The Colorado Department of Labor and Employment says employers should consult an attorney when developing vacation policies. Nothing in the state's labor statutes prevents employers from instituting a use-it-or-lose-it policy whereby employees forfeit vacation time they have earned but not used by the end of the year.
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Emphasis
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The Colorado Department of Labor and Employment does not make vacation time mandatory and allows employers to craft vacation policies as they see fit. But the department is explicit about one aspect of such policies: If an employer provides vacation time, employees generally must receive compensation for all unused time upon separation from employment. But the state allows employers to qualify that stipulation by instituting terms that, for example, may require employees to give a certain amount of notice when resigning to receive compensation for unused vacation time.
Warning
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Federal laws expressly prohibit employers from discriminating in any aspect of employment, including benefits such as vacation time. Employers may not offer vacation time only to some employees on the basis of race, sex, age, national origin or handicap, among other characteristics. Anti-discrimination laws, as enforced by the Equal Employment Opportunity Commission, make no mention of preventing employers from offering vacation time based on tenure with the company. However, the company's policy should make the criteria clear.
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References
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