Accumulated vacation pay

[Mitchell]

I resigned from a Denver, Colorado company after giving a weeks notice. Initially, the company appeared to have no ill will towards my departure, even going as far as to say they would add a $5000.00 severance to my final pay. This severance would include any commission that I was owed. I was to also receive pay for my accumulated vacation pay, expenses and vehicle allowance. I was told by the comptroller they would not have my finial check for me on my last day, because they were still resolving the commission issue. I was also told they would do a direct deposit to my account. A few days later I received my regular pay (for the previous two weeks) but no commission, expenses nor my accumulated vacation pay. I did receive my earning statement that shows I have 106 hours of vacation time accrued. Is it legal to withhold these pays? It is my understanding that accumulated vacation pay is pay and it is illegal to with hold that pay when I depart the company. It is also my understanding that Denver has a new law that allows employees who have not been paid what they are entitled to have the owner arrested for theft. Please advice.

[Pattymd]

Whether or not you receive the commissions is going to depend on whether or not CO law considers them vested wages. MLane?

There is no law in CO, nor hardly any other state, that requires the employer to reimburse you for business expenses.

Re your accrued vacation, that IS due you under Colorado law. See page 31 here:
http://www.coworkforce.com/lab/AB.pdf

[mlane58]

In Colorado Commissions are considered Wages

Colorado Revised Statute 8-4-101 and Colorado Minimum Wage Order Number 22 define wages or compensation as “all amounts for labor or service performed by employees, whether the amount is fixed or ascertained by the standard of time, task, piece, commission basis, or other method…No amount is considered to be wages or compensation until such amount is earned,
vested, and determinable…” (italics added).

C.R.S. 8-4-101 additionally defines commissions as wages or compensation when earned for labor or services performed in accordance with the terms of any agreement between an employer and employee. Payment of Commissions Upon Separation From Employment C.R.S. 8-4-109 (1) and C.R.S. 8-4-109 (2) provide the following guidance on payments upon separation from employment:

When an interruption in the employer-employee relationship by volition of the employer occurs, the wages or compensation for labor or service earned, vested, determinable, and unpaid at the time of such discharge is due and payable immediately…Nothing in the section above requires the payment at the time employment is severed of compensation not yet fully earned under the compensation agreement between the employee and employer, whether written or oral.

[Pattymd]

Thank you sir, learn somethin' new every day, even this ole dog.

[mlane58]

Originally Posted by Pattymd

Thank you sir, learn somethin' new every day, even this ole dog.

Your very welcome!