There are many ways an employer can pay an employee in the employer-employee context. Many employees enjoy the benefit of bonuses, compensation, and vacation pay as compensation. It is important to note that while a bonus might not be deemed a traditional wage, under the Colorado Wage Act they are considered “wages” or “compensation”. That means that if you haven’t been paid your bonus, you can go after your employer under the law for that unpaid bonus.
Both bonuses and commissions earned for labor or services performed in accordance with the terms of any agreement between an employer and employee are considered compensation. Additionally, vacation pay earned in accordance with the terms of any agreement is considered a “wage.” If an employer provides paid vacation for an employee, the employer shall pay upon separation from employment all vacation pay earned and determinable in accordance with the terms of any agreement between the employer and the employee. However, for the purposes of the Colorado Wage Act severance pay is not considered a “wage” or “compensation.”
This is a very important definition under the Colorado Wage Act. If an employer has wrongfully withheld a bonus, commission payout or vacation pay upon separation you should contact an attorney immediately.
Employees often think they can do nothing if their employers haven’t paid them. That simply isn’t true. The Colorado Wage Act is a very powerful law that gives employees recourse.