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Paying Terminated Employees in Colorado

Filed under Managing the Workplace. Fact checked on May 30, 2012.

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Employers in Colorado must comply with these state requirements when making the final wage payment to terminated employees.

In Colorado, upon discharge or layoff, an employee's wages are payable immediately.

If the employer's payroll office is not regularly scheduled to be operational at the time an employee is terminated, then final wages must be made available to the employee within six hours after the start of the employer's next regular workday.

In the case of a quit or a strike, wages become due the next regular payday. When a separation of employment occurs, the employer must make the separated employee's check for wages due available at the work site, the employer's office or by mail to the employee's last known mailing address if requested by the employee.

Employers have the right to set off a lawful charge or indebtedness owed by the terminated employee to the employer or require payment at the time employment is severed of compensation not yet fully earned under a compensation agreement between the employer and employee, whether written or oral.

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