Supreme Court of Colorado

Carmen Nieto v. Clark's Market, Inc.

June 14, 2021488 P.3d 1140

Summary

The court held that vacation pay an employer chooses to provide becomes protected wages once earned and determinable, and cannot be forfeited upon termination through an employment agreement. It rejected a separate vesting requirement for vacation pay and concluded that the forfeiture clause violated the Colorado Wage Claim Act. The court therefore reversed dismissal of Nieto's complaint and remanded for further proceedings.