v. Clark's Market

Citations

• 2019 COA 98

Syllabus

Nieto worked for Clark's Market, Inc. (the Market) and accrued vacation time pursuant to the vacation policy in the Market's employee handbook. The handbook stated that an employee is entitled to payment for accrued but unused vacation time if she voluntarily resigns and gives at least two weeks' notice, but if the Market discharges an employee for any reason or for no reason, or if the employee fails to give two weeks' notice before quitting, the employee forfeits all earned vacation pay benefits. The Market discharged Nieto and refused to pay her for accrued but unused vacation time pursuant to its policy. Nieto sued for payment for accrued vacation time, alleging that the Market's policy violated CRS §§ 8-4-101(14)(a)(III) and -121 of the Colorado Wage Claim Act (CWCA). The district court granted the Market's motion to dismiss for failure to state a claim. On appeal, Nieto argued that CRS § 8-4-121 voids the Market's policy because her accrued vacation pay was earned and determinable, so she has a right to payment for vacation time under the CWCA, and the Market's policy is an illegal waiver of her right to payment. CRS § 8-4-101(14)(a)(III) explicitly includes vacation pay in the definition of wages, but it also provides that no amount is to be considered wages until it is earned, vested, and determinable. Further, nothing in the CWCA creates a substantive right to payment for accrued but unused vacation time rather, an employee's right to such compensation is determined by the parties' employment agreement. Here, the agreement conditioned payment for accrued but unused vacation time, and Nieto did not meet those conditions. Therefore, she did not assert a plausible claim that she was entitled to accrued but unused vacation time. Further, the anti-waiver provision does not create any substantive entitlement to payment independent of the parties' agreement it only applies to rights conferred by the CWCA, which looks to the parties' agreement as the sole potential