Vacation Pay Must Be Paid Out Upon Termination in Colorado, Even If Employer’s Policy Says Otherwise

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On June 14, 2021, the long-awaited decision was issued by the Colorado Supreme Court in Nieto v. Clark’s Market. The Colorado Supreme Court has now definitively ruled that under the Colorado Wage Claim Act employers must pay employees’ earned and determinable vacation upon termination and that any policy or agreement provisions forfeiting employees’ rights to such payments are void...

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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