Penalties under the Colorado Wage Act — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Penalties under the Colorado Wage Act

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Q. We just received notice from a terminated worker that he believes we owe him money for unpaid commissions. What is our potential risk in this situation?

A. The Colorado Wage Act was amended last year to increase the potential remedies for failure to pay wages. The new penalties are the greater of either (1) 10 days’ wages or (2) 125% of the amount of the wages up to $7,500, and 50% of the amount in excess of $7,500.

Those penalties can be increased by 50% if the employee proves the failure to pay was willful. In addition, a prevailing employee also can recover reasonable costs and attorneys' fees.

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