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.
Key Things to Know
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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.
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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)).
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If the employee quit, wages become due and payable upon the next regular payday (Colo. Rev. Stat. Section 8-4-109(1)(b)).
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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)).
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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).
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A Colorado employer may make deductions from wages only as authorized by statute or by written agreement (Colo. Rev. Stat. Section 8-4-105).
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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
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.
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.
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.
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.
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.
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 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).
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.
Frequently Asked Questions
It is a written demand a departed Colorado employee sends a former employer to collect final wages that were not paid by the deadline Colorado sets. The letter names the wages owed, the separation date and type, and the deadline the employer missed under Colo. Rev. Stat. Section 8-4-109, and it demands payment by a set date. In Colorado the written demand is legally important: it starts the 14-day clock that can trigger a penalty under Section 8-4-109(3) before you file a wage claim with the state.
It depends on how the job ended. 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)). If the employee quit, wages become due and payable upon the next regular payday (Colo. Rev. Stat. Section 8-4-109(1)(b)). Once that deadline passes with no payment, a written demand is the usual next step and starts the penalty clock.
Yes, and a written demand triggers it. Under Colo. Rev. Stat. Section 8-4-109(3), if the employer fails to pay within 14 days after you send a written demand, it is liable for the unpaid wages plus a penalty of the greater of two times the unpaid wages or one thousand dollars. If the failure to pay is willful, the penalty rises to the greater of three times the unpaid wages or three thousand dollars. Your Colorado demand letter is the written demand that starts this clock.
Yes. Colorado treats earned vacation pay as wages under Colo. Rev. Stat. Section 8-4-101(14), so all accrued and unused vacation earned under an agreement is due on separation, and a use-it-or-lose-it forfeiture of earned vacation is not enforceable, as the Colorado Supreme Court confirmed in Nieto v. Clark's Market. Your Colorado final paycheck demand letter should list any unpaid accrued vacation along with your earned unpaid wages.
Under Colo. Rev. Stat. Section 8-4-105, a Colorado employer may make deductions from wages only in limited situations, such as deductions required by law, deductions the employee authorized in writing for the employee's benefit, or recovery of money or property the employee failed to return where a written agreement exists. A deduction that falls outside those grounds can be disputed in your Colorado demand letter.
If the employer ignores your demand, you can file a wage complaint with the Colorado Department of Labor and Employment, Division of Labor Standards and Statistics, which accepts complaints from workers who believe they are owed wages. Sending your written demand first is not just practical in Colorado, it starts the 14-day penalty clock under Section 8-4-109(3), and it becomes evidence that you tried to collect if the claim proceeds.
Under Colo. Rev. Stat. Section 8-4-122, an action to recover unpaid wages must generally be commenced within two years after the cause of action accrues, extended to three years if the violation is willful. Deadlines turn on the facts, so sending your Colorado demand letter and filing your wage complaint promptly is the practical course rather than waiting near the limit.
A Colorado demand letter should identify you and the employer, give your dates of employment and how and when the job ended, and state the wages owed, including any earned vacation, which Colorado pays as wages. It should note that the deadline under Colo. Rev. Stat. Section 8-4-109 has passed, state that it is a written demand under Section 8-4-109(3) that starts the 14-day penalty clock, and demand payment by a specific date. Closing with your intent to file a wage complaint with the Colorado Division of Labor Standards reinforces the demand.