Changes to Employer’s ability to deduct for unreturned Company Property

Effective January 1, 2023, the process for attempting to recoup unreturned company property from Colorado employees will change to comply with updated Colorado Department of Labor and Employment (CDLE) requirements.

Current Process

• Obtain a “receipt of company property” form for any issued company property.
• Include the following details on the form:
  • Date the item was received
  • Description of the item
  • Cost of the item
  • Approved language to ensure proper deduction (use the InTANDEM HR form or equivalent)

New Requirements for Unreturned Property

If company property is not returned, employers must follow these additional steps to deduct the fair market value from an employee’s final pay:

• Provide written notice to the employee within 10 days of separation, including:
  • A written accounting of the unreturned property or unpaid money (including loans)
  • The replacement value (fair market value) of the property
  • The date the property/money was given to the employee
  • The date the employee should have returned the property or repaid the money
• If the employee returns the property or repays the money within 14 days of the notice, the employer must refund the deducted amount within 14 days of receipt.

Recommendations

• Ensure all company property forms are signed and documented.
• Communicate expectations clearly to employees regarding the return of company property.
• Begin implementing the new process immediately to ensure compliance.