- the employee has access to his full wages due at least once per pay period and
- the employee can choose an alternative means of payment.
Direct Deposit
An employer may pay wages by direct deposit, so long as the employee has consented to the deposit and the wages are deposited into a financial institution of the employee’s choosing. Colorado Stat. 8-4-102. Colorado employers cannot require an employee to receive payment of wages by direct deposit.
Payroll Card
Colorado labor laws allow an employer to pay an employee’s wage by payroll card if:
- the employee has access to his full wages due at least once per pay period and
- the employee can choose an alternative means of payment.
Payment upon Separation from Employment
Employees who are fired, discharged, terminated, or laid off
When an employer discharges an employee, the employer must pay the employee immediately. If at time of discharge the employer’s accounting unit, responsible for the drawing of payroll checks, is not regularly scheduled to be operational, then the wages due the separated employee must be made available no later than six (6) hours after the start of the accounting unit’s next regular workday. However, if the accounting unit is located off-site, the employer must deliver the wages due no later than twenty-four (24) hours after the start of the employer’s accounting unit’s next regular workday to one of the following locations selected by the employer: (i) the work site; (ii) the employer’s local office; or (iii) the employee’s last-known mailing address. CO Statute 8-4-109
Employees who quit or resign
When an employee quits or resigns, the employer must pay the employee by the next regular payday. When payment is made, the employer must make the wages due available at one of the following locations selected by the employer: (i) the work site; (ii) the employer’s local office; or (iii) the employee’s last-known mailing address. CO Statute 8-4-109
Employees who are suspended or resigns due to a labor dispute (strike)
When an employee leaves employment as a result of a labor dispute, the employer must pay the employee by the next regular payday. CO Statute 8-4-108
Wages in Dispute
If there is a dispute between the employer and the employee regarding wages due, must pay that amount conceded to be due, without condition, within the time required, depending on whether the employee was discharged or voluntarily quit. The employer may retain the disputed amount until the matter is resolved. CO Statute 8-4-109
Deductions from Wages
An employer may not make any deductions from an employee’s for:
- cash shortages,
- damaged or lost property,
- the cost of uniforms or necessary equipment,
- dishonored or bad checks, or
- any similar deductions.
An employer may not withhold or deduct any wages from an employee’s paycheck, unless:
- the deduction is mandated by or in accordance with local, state, or federal law including, but not limited to, deductions for taxes, garnishments, or any other court-ordered deduction;
- the deduction is for loans, advances, goods or services, and equipment or property provided to an employee pursuant to a written agreement, so long as it is enforceable and not in violation of law;
- the deduction is necessary to cover the replacement cost of a shortage due to theft by an employee if a report has been filed with the proper law enforcement agency in connection with such theft pending a final adjudication by a court of competent jurisdiction; however, if the accused employee is found not guilty in a court action or if criminal charges related to such theft are not filed against the accused employee within 90 days after the filing of the report with the proper law enforcement agency, or the charges are dismissed, the accused employee is entitled to recover any amount wrongfully withheld plus interest.
- Any deduction not listed above which is authorized by an employee if such authorization is revocable including, but not limited to, deductions for hospitalization and medical insurance, other insurance, savings plans, stock purchases, voluntary pension plans, charities, and deposits to financial institutions;
- A deduction for the amount of money or the value of property that the employee failed to properly pay or return to the employer upon separation from employment. An employer has ten calendar days after the termination of employment to audit and adjust the accounts and property value of any items entrusted to the employee before the employee’s wages or compensation is paid.
Uniforms, Tools, and Other Equipment Necessary for Employment
If an employer requires an employee to wear a uniform, the employer must pay the cost of purchases, maintenance, and cleaning of the uniforms or special apparel unless:
- the uniform furnished by the employer is plain and washable and does not need or require special care such as ironing, dry cleaning, pressing, etc., the employer is not required to maintain or pay for cleaning.
- clothing that is ordinary, plain, and washable that is required as a uniform unless a special color, make, pattern, logo or material is required.
An employer may not require a reasonable deposit as security for the return of each uniform furnished to employees upon issuance of a receipt to the employee for such deposit. The cost of ordinary wear and tear of a uniform or special apparel may not be deducted from the employee’s wages.
Pre-hire Medical, Physical, or Drug Tests
An employer may not require an applicant or employee to pay the cost of a medical examination or the cost of furnishing any records required by the employer as a condition of employment, except records necessary to support the applicant’s statements in the application for employment. CO Statute 8-2-118
Notice of Wage Reduction
An employer must post and keep posted conspicuously at the place of work if practicable, or otherwise where it can be seen as employees come or go to their places of work, or at the office or nearest agency for payment kept by the employer, a notice specifying the regular paydays and the time and place of payment and also any changes concerning them that may occur from time to time. CO Statute 8-4-107
Statement of Wages (Pay Stub)
An employer must, at least monthly or at the time of each payment of wages or compensation, furnish to each employee an itemized pay statement in writing showing the following:
- Gross wages earned;
- All withholdings and deductions;
- Net wages earned;
- The inclusive dates of the pay period;
- The name of the employee or the employee’s social security number; and
- The name and address of the employer.
Record Keeping Requirements
An employer must keep for at least two year at the place of employment or at the employer’s principal place of business in Colorado, a true and accurate record for each employee which contains the following information:
- name, address, social security number, occupation and date of hire of said employee
- date of birth, if the employee is under eighteen (18) years of age
- daily record of all hours worked
- record of allowable credits and declared tips
- regular rates of pay, gross wages earned, withholdings made and net amounts paid each pay period
Notice Requirements
An employer must post and keep posted conspicuously at the place of work if practicable, or otherwise where it can be seen as employees come or go to their places of work, or at the office or nearest agency for payment kept by the employer, a notice specifying the regular paydays and the time and place of payment and also any changes concerning them that may occur from time to time. CO Statute 8-4-107
