The Colorado Wage Act (CWCA) is a state labor law that protects the rights of workers and governs wage payment regulations in Colorado. This law establishes minimum wage, overtime pay, and wage payment requirements for employers.
A critical provision within the CWCA is C.R.S. § 8-4-109, which requires employers to pay all earned wages upon termination. This ensures that employees are not left without pay, even in cases of involuntary termination. Employees who are denied their wages can issue a demand for payment of wages in Colorado and, if necessary, pursue legal action under the CWCA.
What is the Colorado Wage Claim Act?
The Colorado Wage Claim Act (CWCA) outlines employer obligations and worker protections related to wage payments. Key areas covered by the CWCA include:
- Minimum Wage Compliance: Employers must meet state-mandated minimum wage rates, which adjust periodically based on the cost of living.
- Overtime Pay Regulations: Eligible employees are entitled to overtime compensation for hours worked beyond legal thresholds.
- Timely Wage Payments: Employers must pay employees their earned, vested, and determinable wages at regular intervals.
- Wage Theft and Non-Payment: Employees who have not received wages may submit a Colorado wage demand letter or file a wage claim.
- Penalties for Non-Compliance: Employers who violate Colorado wage payment laws may face significant penalties.
The Colorado Department of Labor and Employment (CDLE) is responsible for enforcing the CWCA and handling wage claims filed by employees.
Learn more about the Colorado Wage Act with the Colorado unpaid wages lawyers at Baird Quinn, LLC.
Understanding C.R.S. § 8-4-109 in Colorado
C.R.S. § 8-4-109, a key provision of the Colorado Wage Claim Act, mandates that employers must:
- Pay all final wages immediately upon termination.
- If the employer’s accounting unit is not operational, wages must be paid within six hours of the next regular workday.
- If wages are unpaid, an employee can send a demand for payment of wages in Colorado to initiate legal proceedings.
Failure to comply may result in severe penalties, including:
- Automatic penalties that can double unpaid wages.
- Willful violations that may triple the employer’s liability.
Employees have a limited timeframe to file a claim under Colorado’s wage theft statute of limitations, making it essential to act promptly when seeking unpaid wages.
Colorado Supreme Court’s Clarification of CWCA Section 109
In Hernandez v. Domenico Farms, Inc. (2018), the Colorado Supreme Court clarified that wage claims under C.R.S. § 8-4-109 must adhere to the statute of limitations.
The court ruled:
“The statute of limitations for wage claims begins on the date wages first become due and payable—not on the date of termination.”
Key Takeaways from the Court’s Decision:
- Claims must be filed within two or three years, depending on whether the violation was willful.
- Termination does not restart the statute of limitations for previously unpaid wages.
- Employees should file a demand for payment of wages as soon as they notice a violation.
This decision reinforces the importance of timely wage claims to ensure employees recover their earned compensation under Colorado wage payment laws.
What This Means for Colorado Employees and Employers
For Employees:
- If you suspect wage theft, file a Colorado wage claim process through the CDLE.
- Issue a written demand for unpaid wages under Colorado wage claim laws.
- Act within the statute of limitations to preserve your legal rights.
For Employers:
- Ensure compliance with C.R.S. § 8-4-109 by paying terminated employees their full wages on time.
- Maintain accurate payroll records to avoid disputes over Colorado wage claim penalties.
- Respond promptly to wage demand letters to prevent legal penalties or lawsuits.
Need Help With Unpaid Wages in Colorado?
If you have questions about Colorado wage payment laws, CWCA claims, or unpaid wages, the experienced employment attorneys at Baird Quinn can help. Contact us today for expert legal guidance.