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Paying off vacation at termination

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Q. We have a policy that vacation pay is not paid at termination unless the employee attends an exit interview at which he signs a release of any claims he may have. Is this permitted?

This creates a problem under Colorado law, which treats vacation pay as wages that must be paid at termination. Requiring an employee to sign a release to obtain something to which he or she is already legally entitled to receive is improper.

Furthermore, the release probably is not enforceable, because the employee has not received any benefit for signing it—he was already entitled to the vacation pay.

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