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Colorado PTO laws - vacation payout and accrual rights
What Colorado law says about paid time off payout and accrual
Colorado REQUIRES vacation payout at termination
Earned vacation must be paid out at termination under COMPS Order
Colorado PTO law overview
Colorado requires payout of earned but unused vacation at termination under the Colorado Wage Claim Act. Use-it-or-lose-it policies are not permitted for vacation that has already been earned.
Colorado's vacation payout requirement was clarified in 2022. Employers can set reasonable accrual caps but cannot take away vacation that has already been earned and vested under the company's own policy.
Governing law
Colorado PTO and vacation law is governed by Colorado Wage Claim Act CRS 8-4-101 and COMPS Order 38 (C.R.S. § 8-4-101). The official authority for Colorado wage and hour enforcement including PTO disputes is the Colorado Division of Labor Standards and Statistics.
Data source: C.R.S. § 8-4-101. Last verified: 2026. PTO laws can change. Consult an employment attorney for advice specific to your Colorado situation.