When should I pay my employees’ salaries in Colorado as an employer?

| Dec 13, 2019 | Employee Pay |

As an employer in Colorado, the law requires you to provide your employees with an itemized paycheck that details how much the employee made, their tax deductions, and any other payment information. You should present the paycheck to your employees once or twice every month at the specific time of wage payment.

If you have an employment agreement with your employees, you should present them with a paycheck according to the dates listed in the contract. If you do not have any contract with your employee, you should abide by Colorado’s wage and hour laws.  Colorado law requires employers to present their employees with a paycheck at least every thirty days. However, payment should not be made more than ten days after the closing of the last payment period. Reimbursements are not part of the paycheck.

But what happens if you fire an employee? The Colorado Wage Claim Act, which applies to private-sector employers, governs this question.  For involuntary termination, final pay is ordinarily due and payable immediately upon termination.  C.R.S. § 8-4-109(a).  In the event that the accounting unit responsible for drawing payroll checks is not regularly scheduled to be operational at the time of termination, the wages due must be made available to the separated employee no later than six hours after the start of the accounting unit’s next regular workday. Id. If your payroll is not handled internally, you should ensure that the employee receives their paycheck within 24 hours of termination. Id.  If the employee voluntarily terminates their employment, however, employers need not provide them with their paycheck until the next scheduled payday. C.R.S. § 8-4-109(b).

If you happen to terminate an employee who has accrued vacation time, be sure to pay it out when you provide them with their final paycheck.  C.R.S. § 8-4-101(14)(a)(I)-(III). Colorado law does not allow an employer to hold the final paycheck of your employees. If you do so, you may end up with a wrongful termination charge.

You should not take this information as legal advice. It is only meant to be informative.