Colorado Final Paycheck Demand Letter
In Colorado your final wages are due immediately if you were fired and on the next regular payday if you quit. A written demand can trigger a penalty if the employer does not pay within 14 days, and earned vacation is paid as wages. Attorney review available.
Introduction
A final paycheck demand letter is a written demand a departed Colorado employee sends a former employer to collect final wages that were not paid by the state deadline, before filing a wage claim with the Colorado Division of Labor Standards and Statistics or in court. In Colorado the timing depends on how the job ended. If the employer discharged the employee, wages that are earned, vested, determinable, and unpaid at the time of discharge are due and payable immediately (Colo. Rev. Stat. Section 8-4-109(1)(a)). If the employee quit, wages become due and payable upon the next regular payday (Colo. Rev. Stat. Section 8-4-109(1)(b)). A written demand matters in Colorado: if the employer fails to pay within 14 days after the demand is sent, it is liable for the unpaid wages plus a penalty of the greater of two times the unpaid wages or one thousand dollars, rising to the greater of three times or three thousand dollars if the failure is willful (Colo. Rev. Stat. Section 8-4-109(3)). Colorado treats earned vacation pay as wages that must be paid on separation (Colo. Rev. Stat. Section 8-4-101(14)). If the demand is ignored, the employee can file a wage complaint with the Colorado Division of Labor Standards and Statistics. DocDraft builds your Colorado final paycheck demand letter from your facts, with attorney review available before you send it.
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Key Things to Know
- 1
A final paycheck demand letter is a written demand a departed Colorado employee sends a former employer to collect unpaid final wages, before filing a wage claim with the state or suing.
- 2
If the employer discharged the employee, wages earned, vested, determinable, and unpaid at the time of discharge are due and payable immediately (Colo. Rev. Stat. Section 8-4-109(1)(a)).
- 3
If the employee quit, wages become due and payable upon the next regular payday (Colo. Rev. Stat. Section 8-4-109(1)(b)).
- 4
A written demand is the trigger in Colorado: if the employer fails to pay within 14 days after the demand is sent, it owes the unpaid wages plus a penalty of the greater of two times the wages or $1,000, and three times or $3,000 if the failure is willful (Colo. Rev. Stat. Section 8-4-109(3)).
- 5
Colorado treats earned vacation pay as wages that must be paid on separation, and a use-it-or-lose-it forfeiture of earned vacation is not enforceable (Colo. Rev. Stat. Section 8-4-101(14); Nieto v. Clark's Market).
- 6
A Colorado employer may make deductions from wages only as authorized by statute or by written agreement (Colo. Rev. Stat. Section 8-4-105).
- 7
If the demand is ignored, a Colorado employee can file a wage complaint with the Division of Labor Standards and Statistics, and an action must generally be brought within two years, or three if willful (Colo. Rev. Stat. Section 8-4-122).
Key decisions before you file
Before you file a Final Paycheck Demand Letter in Colorado, a few decisions shape the document: which option to choose and what each one means. The Final Paycheck Demand Letter guide walks through them.
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Colorado Requirements for Final Paycheck Demand Letter
Final Pay Is Due Immediately If You Were Fired
If a Colorado employer discharges an employee, wages earned, vested, determinable, and unpaid at the time of discharge are due and payable immediately (Colo. Rev. Stat. Section 8-4-109(1)(a)). Your demand letter should state that this deadline has passed.
Final Pay If You Quit: Next Regular Payday
If a Colorado employee quits, wages become due and payable upon the next regular payday (Colo. Rev. Stat. Section 8-4-109(1)(b)). State your last day and the resulting due date.
Written Demand Triggers the Penalty
In Colorado a written demand starts the penalty clock: if the employer fails to pay within 14 days after the demand is sent, it owes the unpaid wages plus a penalty of the greater of two times the wages or $1,000, and three times or $3,000 if willful (Colo. Rev. Stat. Section 8-4-109(3)). Your demand letter is that written demand.
Earned Vacation Is Paid as Wages
Colorado treats earned vacation pay as wages that must be paid on separation, and a use-it-or-lose-it forfeiture of earned vacation is not enforceable (Colo. Rev. Stat. Section 8-4-101(14); Nieto v. Clark's Market). List any unpaid accrued vacation in your letter.
Limits on Deductions From a Final Paycheck
A Colorado employer may make deductions from wages only as authorized by statute or by written agreement, such as deductions required by law or amounts the employee authorized in writing (Colo. Rev. Stat. Section 8-4-105). Dispute any improper deduction in your letter.
Where to File a Wage Claim in Colorado
If the demand is ignored, a Colorado worker can file a wage complaint with the Department of Labor and Employment, Division of Labor Standards and Statistics, which accepts complaints from workers owed wages. Keep your records for the claim.
Send With Proof of Delivery
Send the written demand to the employer's address using a trackable method such as certified mail with return receipt, and keep a copy and the delivery record. In Colorado, proof of when the demand was sent fixes the start of the 14-day penalty clock under Section 8-4-109(3).
Deadline to Claim Unpaid Wages
In Colorado an action to recover unpaid wages must generally be commenced within two years after the cause of action accrues, extended to three years for a willful violation (Colo. Rev. Stat. Section 8-4-122). Filing promptly is the practical course.