This Law Firm Publication by Fisher & Phillips LLP discusses the Colorado Department of Labor Division of Employment's (CDLE) new enforcement position prohibiting "use it or lose it" vacation pay policies. CDLE's new position, recently unveiled at a September 2015 seminar, will prohibit policies under which employees forfeit earned vacation time if it is not used by a certain time. CDLE has not yet released a formal written policy statement, but this will likely be released in the coming months. Employers may still limit vacation accrual and the new rules do not apply to sick leave or paid time off. Employers who violate the new rules may be subject to wages, fines and penalties under the Colorado Wage Theft Act.