The Colorado Department of Labor and Employment (CDLE) published final rules on the Colorado Overtime and Minimum Pay Standards Order #38 (COMPS38) and updated the Wage Protection Rules.
These rules become effective January 1, 2022.
The updated Wage Protection Rules state that employers must pay out any accrued and unused PTO or Vacation hours. This does not include leave for specific circumstances such as bereavement leave or jury duty.
The rule clarifies that employees cannot forfeit any accrued and unused PTO or Vacation time that is agreed upon in an employment agreement or policy. Employers may have policies that impose an annual cap on vacation pay, but under the rule, employees cannot forfeit any that has accrued.
The new Wage Protection Rules provide some clarity on what rate paid sick leave should be paid out at.
COMPS 38 states there are two options for determining the regular rate of pay for employees working multiple jobs at different hourly rates for the same employer:
Employers should review the requirements listed above in the coming weeks and, if necessary, make any applicable changes to their policies and handbooks.
Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.