Colorado does not require employers to provide paid vacation or to establish vacation policies. Nonetheless, many employers do both. Employers commonly have use-it-or-lose-it policies, which limit the amount of vacation an employee may carry forward from year to year. For example, if an employee receives 10 days of vacation annually and does not take all vacation time by year end, she forfeits those unused vacation days for the following year. In recent years, legislation and enforcement of wage law have changed, causing employers to rethink these use-it-or-lose-it policies.
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