Colorado Final Paycheck Law — deadline checker

Frequently Asked Questions

• When must a Colorado employer pay a fired employee's final wages?

  Colorado law requires immediate payment at the time of discharge. Under C.R.S. § 8-4-109(1)(a), all earned wages are due at the moment of firing or layoff. The only narrow exception is when the employer's payroll unit is offsite — in that case, wages are due within 24 hours of the next regular workday.

• When must a Colorado employer pay wages after an employee quits?

  When an employee voluntarily resigns, wages are due by or on the next regular payday. Under C.R.S. § 8-4-109(1)(b), the employer must pay by that next scheduled payday, not at some later date.

• What penalties apply if a Colorado employer is late on a final paycheck?

  If an employer fails to pay within 14 days of a written demand, the Colorado Division of Labor Standards & Statistics (DLSS) or a court must order penalties. Filing a wage complaint and sending a formal written demand starts the penalty clock. Contact CDLE at (303) 318-8441.

• Does the Colorado final paycheck include accrued vacation?

  Yes — if the employer's policy provides for accrued vacation upon separation, or if the employee has vested unused vacation time, it is considered wages under the Colorado Wage Act and must be included in the final paycheck. See CDLE INFO #3E for details.

• Can a Colorado employer deduct equipment costs from a final paycheck?

  No — not without a prior written authorization that does not reduce pay below minimum wage. Employers cannot unilaterally withhold final wages to offset losses, unreturned equipment, or company property without a valid prior agreement and proper legal process.

• What counts as 'wages' in a Colorado final paycheck?

  The Colorado Wage Act defines wages broadly: hourly pay, salary, earned commissions, formula-based bonuses that have vested, piece-rate earnings, and payable accrued vacation. It generally does not include discretionary bonuses or severance unless promised in writing.

• How do I make a formal written demand for an overdue final paycheck?

  Use the CDLE's Demand for Payment of Wages form (available at cdle.colorado.gov) or write a letter stating the amount owed and the date wages were due. Send it in a way that creates a record — certified mail or email. This starts the 14-day penalty clock under C.R.S. § 8-4-109.

• Does Colorado set a deadline even if the amount owed is disputed?

  Yes. Colorado employers must pay any undisputed wages on time, even if some portion of the final paycheck amount is in dispute. Withholding undisputed wages while a dispute is pending may still trigger penalties.

• Does the same final paycheck deadline apply regardless of the method of payment?

  Yes. Whether the employer pays by check, direct deposit, or cash, the same legal deadlines apply. A final paycheck via direct deposit must be initiated in time to meet the discharge (immediate) or resignation (next payday) deadline.

• What is the statute of limitations for unpaid final wages in Colorado?

  Under the Colorado Wage Act (C.R.S. § 8-4-122), the statute of limitations is generally 3 years for willful violations. Claims must be filed within this period to preserve your right to recover wages and penalties.