Colorado PTO Laws 2024

Colorado PTO Laws in 2024 cover both mandatory paid sick leave under the Healthy Families and Workplaces Act (HFWA) and regulations related to paid time off (PTO) accrual, payout, and allowable policies. While Colorado law does not require employers to offer vacation or general PTO, these benefits often intersect with sick leave obligations and state wage law. Understanding how these laws work together helps both employers and employees maintain compliance and ensure fair treatment in time‘off policies.

Mandatory Paid Sick Leave under HFWA

Under the Colorado Healthy Families and Workplaces Act (HFWA), which took effect statewide in 2022, all employers with at least one employee must provide paid sick and safe leave:

• Employees accrue 1 hour of paid sick leave for every 30 hours worked.
• Accrual caps at 48 hours per year.
• Employers may front-load the full 48 hours at the start of a year, but must still allow carryover of unused leave up to the cap.
• Unused sick leave carries over into the next year, but annual usage is limited to 48 hours.

Employees may use sick leave not only for their own illness or preventive care, but also for family members’ needs, safe time due to domestic or sexual violence, grief, or public health emergencies. Use of leave must be at the employee’s regular rate of pay.

PTO vs. Sick Leave in Colorado

Colorado does not mandate vacation days or general PTO, but employers who choose to offer these benefits must ensure policies comply with state laws:

• Any accrued PTO or vacation time must be paid out at termination they are considered wages. Use-it-or-lose-it provisions are prohibited.
• PTO policies that offer more than HFWA sick leave must allow use for the same qualifying reasons and accrual structure, or else employers must separately comply with HFWA requirements.

Payout and Forfeiture Rules

Colorado law treats unused PTO and vacation as earned wages. Therefore:

• Employers must pay out all unused, accrued PTO upon separation.
• Employers cannot enforce forfeiture clauses that void earned leave.
• Failure to pay final wages within 14 days of written demand can result in double damages, up to $1,000 or more.

Carryover and Accrual Policies

For both sick leave and employer‘provided PTO:

• Sick leave accrual continues until the 48‘hour cap is reached and remains with the employee year to year.
• PTO carried over from year to year must follow the employer’s documented policy but forfeiture rules still do not apply once earned.

Use of Leave and Required Notice

Under HFWA, employees must make a good faith effort to provide advance notice for foreseeable absences and help minimize disruption. Employers may require documentation for leave usage, especially beyond three consecutive days, though the documentation must respect privacy and nondiscriminatory standards. Employers must post notices of rights at hire, in English and any language spoken by at least 5% of employees.

Interaction with Paid Family and Medical Leave (FAMLI)

Effective January 1, 2024, Colorado’s paid family and medical leave insurance (FAMLI) program began offering up to 12 weeks of partial wage replacement for serious medical circumstances or caring for family members. This program is separate from HFWA sick leave but may interact where longer absences are necessary.

Recommendations for Employers

Employers can manage compliance with Colorado PTO laws by following best practices:

• Ensure any PTO policy meets or exceeds HFWA sick leave standards.
• Avoid use-it-or-lose-it policies accrued leave must be paid out.
• Front load or allow accrual but always permit a 48‘hour carryover for sick leave.
• Maintain clear documentation and provide required notices.
• Train HR and managers on eligibility, accrual caps, and qualifying reasons.

Employee Rights and Obligations

Employees covered in Colorado should understand that:

• They earn paid sick leave from day one one hour per 30 hours worked.
• They may use leave for personal or family health issues, safe‘time events, grief, or public health emergencies.
• Unused PTO or sick leave must be paid at separation unless they resign prior to accrual or have not earned it.

Common Misconceptions

Some employers incorrectly believe they can avoid payout by limiting policies or forfeiting leave annually. The Colorado Supreme Court clarified inNieto v. Clark’s Marketthat earned, unused vacation or PTO is no less protected than wages, regardless of company policy. Any contractual attempt to forfeit it is void.

Colorado’s 2024 PTO and leave laws combine mandatory paid sick leave requirements under HFWA, strict payout rules for accrued PTO or vacation, and evolving benefits under FAMLI leave. While employers are not required to offer general PTO, any earned paid time off becomes protected wages subject to payout. Understanding accrual rates, eligibility, documentation rules, and final wage obligations helps both employers and employees comply with Colorado law and avoid costly penalties.

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