Accrued but Unused Vacation Pay Must Be Paid Out Upon Termination of Employment in Colorado

Colorado’s Supreme Court found that Colorado employees receiving vacation time must be paid out accrued but unused time when their employment is terminated. In Carmen Nieto v. Clark’s Market, Inc., the state Supreme Court held that if an employer chooses to provide vacation pay, all accrued but unused vacation pay must be paid to employees upon termination and that no agreement to the contrary will be enforced.

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Colorado Court Rejects Challenge to Colorado Equal Pay for Equal Work Act

Following the passage of Colorado’s Equal Pay for Equal Work Act (CEPEWA), employers were faced with a stricter disclosure regime, including new provisions aimed at redressing gender-based pay inequity. At the close of 2020, the Rocky Mountain Association of Recruiters (Rocky Mountain) brought a lawsuit challenging those provisions and framing the CEPEWA as an undue burden. On May 27, 2021, the U.S. District Court for the District of Colorado weighed in, with Judge William Martínez rejecting Rocky Mountain’s request for a preliminary injunction that would have prohibited enforcement of the CEPEWA.

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Top 3 Employee Mobility and Restrictive Covenant Issues to Watch For in 2021

With 2020 finally in our rearview mirror, we can begin to look ahead to a promising and prosperous 2021. As the cloud of COVID-19 starts to lift (thanks to several vaccines), we expect employers will slowly begin to reopen their offices, employees will travel more, and the job market may revert back to the low unemployment levels that predated the onset of COVID-19 in March 2020. The ever-changing landscape of restrictive covenants certainly could affect all of this employment-related activity, including non-competes and non-solicits. Here are our early predictions for the Top 3 hot-button issues to look out for in the coming year.

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Biden Proposes Nationwide Non-Compete Ban

President-Elect Biden recently released his “Plan for Strengthening Worker Organizing, Collective Bargaining, and Unions.” His Plan states that “Biden will work with Congress to eliminate all non-compete agreements, except the very few that are absolutely necessary to protect a narrowly defined category of trade secrets, and outright ban all no-poaching agreements,” which are common in franchisor/franchisee and other arrangements. The foregoing statement is consistent with Biden’s previous comments about eliminating non-compete restrictions and no-poaching agreements while on the campaign trail, as well as with the Obama administration’s call for states to ban non-compete agreements.

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Colorado Passes Paid Family and Medical Leave Law

Starting on January 1, 2024, Colorado employees will be entitled to take 12 weeks of paid family and medical leave as a result of the passage of Colorado Proposition 118, the Paid Medical and Family Leave Initiative. Employees will be able to take an additional four weeks of paid leave in connection with pregnancy or childbirth complications. The paid leave will be funded through a payroll tax shared equally by employers and employees, starting on January 1, 2023.

For the full alert, visit the Faegre Drinker website.

Colorado Employers: Prepare to Comply With Equal Pay for Equal Work Act Taking Effect January 1, 2021

Colorado employers should prepare to comply with the Equal Pay for Equal Work Act (EPEWA), which will become law in the state on January 1, 2021. The new law will prohibit employment discrimination on the basis of sex, which includes gender identity, or sex in combination with another protected status, by paying employees of different sexes differently for substantially similar work.

For the full alert, visit the Faegre Drinker website.