This Law Firm Publication by Fisher & Phillips LLP discusses the recent Frequently Asked Questions (FAQ) posting on the Colorado Department of Labor's (CDOL) website that attempts to clarify the CDOL's position on "use it or lose it" vacation policies. In September 2015, the CDOL announced that these policies were not permitted. In response to confusion generated by its stance, the department stated on October 19, 2015 that the Colorado Wage Payment Act does permit "use it or lose it" policies in employment agreements, but that employees cannot be deprived their earned vacation time or wages associated with that time. The Law Firm Publication notes the conflicting nature of the CDOL's new message, which further confuses the application and enforcement of these policies in the state. Based on the FAQ posting, the employer and employee must agree to use of the policy, the policy cannot be applied retroactively, and the value of earned vacation time must be paid to the employee at the end of employment.