The Colorado Division of Labor and Employment (CDLE) had a busy last few weeks of December in 2022, revising a number of its Interpretive Notice and Formal Opinions (INFOs). On December 23, 2022, CDLE issued a revised INFO #16 regarding Deductions From, and Credits Towards, Employee Pay.
The Colorado Wage Act (C.R.S. § 8-4-105(1)(e)) and previous CDLE guidance allowed an employer to deduct amounts from an employee’s final paycheck for the amount of money or the value of property that an employee failed to properly pay or return to the employer when the employee separated from employment if: (1) the employer “entrusted the employee with collecting, disbursing, or handling the money or property”; (2) the employer and employee had agreed that the employee would return the money or property; and (3) the employee failed to return that money or property as agreed.
