Section 8-4-109 - Termination of employment - payments required - civil penalties - payments to surviving spouse or heir(1)(a) When an interruption in the employer-employee relationship by volition of the employer occurs, the wages or compensation for labor or service earned, vested, determinable, and unpaid at the time of such discharge is due and payable immediately. If at such time 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 shall be made available to the employee no later than six hours after the start of such employer's accounting unit's next regular workday; except that, if the accounting unit is located off the work site, the employer shall deliver the check for wages due the separated employee no later than twenty-four hours after the start of such employer's accounting unit's next regular workday to one of the following locations selected by the employer: (II) The employer's local office; or(III) The employee's last-known mailing address.(b) When an employee quits or resigns such employee's employment, the wages or compensation shall become due and payable upon the next regular payday. When a separation of employment occurs, the employer shall make the separated employee's check for wages due available at one of the following locations selected by the employer: (II) The employer's local office; or(III) The employee's last-known mailing address.(c) If an employer has made the employee's wages or compensation available at the work site or at the employer's local office under paragraph (a) or (b) of this subsection (1), and the employee has not received the wages or compensation within sixty days after the wages or compensation were due, the employer shall mail the employee's check for wages or compensation due to the employee's last-known mailing address.(2) Nothing in subsection (1) of this section shall limit the right of an employer to set off any deductions pursuant to section 8-4-105 owing by the employee to the employer or require the payment at the time employment is severed of compensation not yet fully earned under the compensation agreement between the employee and employer, whether written or oral.(3)(a) If an employer refuses to pay wages or compensation in accordance with subsection (1) of this section or section 8-4-103 (1)(a), the employee, the employee's designated agent, or the division may send a written demand for the payment on behalf of the employee or a group of similarly situated employees or may file an administrative claim or civil action for the payment.(a.5) If the employer disputes the amount of wages or compensation claimed by an employee under this article 4 and if, within fourteen days after the written demand is sent or the administrative claim or civil action is sent to or served on the employer, the employer makes a legal tender of the full amount of all wages that the employee, the employee's designated agent, or the division in good faith demands are owed for any violation of this article 4, the employer shall not be liable for any penalty unless, in a legal proceeding, including a civil action or an administrative procedure under sections 8-4-111 and 8-4-111.5, the employee recovers a greater sum than the amount the employer tendered.(b) On or after January 1, 2023, if an employer fails or refuses to pay, in the manner specified in subsection (3)(d) of this section, all earned, vested, and determinable wages or compensation within fourteen days after the written demand is sent or within fourteen days after a civil action or administrative claim for the wages or compensation is sent to or served on the employer, the employer is liable to the employee or group of similarly situated employees for the amount of the earned, vested, determinable, and unpaid wages or compensation plus an automatic penalty of: (I) The greater of two times the amount of the unpaid wages or compensation or one thousand dollars; or(II) If the employee can show that the employer's failure or refusal to pay wages or compensation was willful, the greater of three times the amount of the unpaid wages or compensation or three thousand dollars.(c) Evidence that a judgment or wage determination of the division has, within the previous five years, been entered against the employer for failure to pay wages or compensation is admissible as evidence of willful conduct. An employer's failure or refusal to pay wages or compensation is per se willful if the employee can show that the claim for which a penalty under subsection (3)(b) of this section is assessed is the employer's second or subsequent failure or refusal to pay to employees wages or compensation of the same or similar type within the five years immediately preceding the claim.(d)(I) The employer shall send or deliver payment, by check, draft, or voucher in the employee's name, to the employee at the address contained in the written demand or administrative claim or civil action; or make the payment by direct deposit authorized under section 8-4-102 (2) if the employee has not revoked the authorization. The employer may, but is not required to, make the payment by direct deposit to an account specified by the employee in the demand, administrative claim, or court action, even if the employee has not previously authorized direct deposit of the employee's compensation, or make the payment by another method requested by the employee in the demand, administrative claim, or court action, if applicable. If the employee has not previously authorized direct deposit of compensation and the demand, administrative claim, or court action does not state an address to which the payment should be mailed, the employer shall make the payment as follows:(A) To the employee's last-known address according to the records of the employer; or(B) If applicable and if the employer so elects, as otherwise requested by the employee in the demand, administrative claim, or court action.(II) The employee or the employee's designated agent may commence a civil action to recover the penalty set forth in this subsection (3). If, within fourteen days after a written demand is sent to or an administrative claim or a civil action is sent to or served on the employer, the employer makes a full legal tender of all amounts demanded in good faith for all employees, the employee shall dismiss the action.(4) If, at the time of the death of any employee, an employer is indebted to the employee for wages or compensation, and no personal representative of the employee's estate has been appointed, such employer shall pay the amount earned, vested, and determinable to the deceased employee's surviving spouse. If there is no surviving spouse, the employer shall pay the amount due to the deceased employee's next legal heir upon the request of such heir. If a personal representative for the employee has been appointed and is known to the employer prior to payment of the amount due to the spouse or other legal heir, the employer shall pay the amount due to such personal representative upon the request of such representative. The employer shall require proof of a claimant's relationship to the deceased employee by affidavit and require such claimant to acknowledge the receipt of any payment in writing. Any payments made by the employer pursuant to the provisions of this section shall operate as a full and complete discharge of the employer's indebtedness to the extent of the payment, and no employer shall thereafter be liable to the deceased employee's estate or to the deceased employee's personal representative. Any amounts received by a surviving spouse or legal heir shall be considered in diminution of the allowance to the spouse or legal heir pursuant to the "Colorado Probate Code", articles 10 to 17 of title 15, C.R.S. Nothing in this section shall create a substantive right that does not exist in any agreement between the employer and the employee.Amended by 2022 Ch. 370, § 7, eff. 1/1/2023.Amended by 2014 Ch. 276, § 4, eff. 1/1/2015.L. 2003: Entire article amended with relocations, p. 1856, § 1, effective August 6. L. 2007: (3) amended, p. 1677, § 2, effective May 31. L. 2014: (1)(c) added and (3) amended, (SB 14-005), ch. 276, p. 1112, § 4, effective January 1, 2015.This section is similar to former § 8-4-104 as it existed prior to 2003, and the former § 8-4-109 was relocated to § 8-4-113 .
2022 Ch. 370, was passed without a safety clause. See Colo. Const. art. V, § 1(3). (1) For the legislative declaration contained in the 2007 act amending subsection (3), see section 1 of chapter 381, Session Laws of Colorado 2007. (2) For the short title ("Wage Protection Act of 2014") in SB 14-005, see section 1 of chapter 276, Session Laws of Colorado 2014.