(1)Negotiable instrument
required. No employer or agent or officer thereof shall issue, in payment of or as an
evidence of indebtedness for wages due an employee, any order, check, draft, note,
memorandum, or other acknowledgment of indebtedness unless the same is
negotiable and payable upon demand without discount in cash at a bank organized
and existing under the general banking laws of the state of Colorado or the United
States or at some established place of business in the state. The name and address
of the drawee shall appear upon the face of the order, check, draft, note,
memorandum, or other acknowledgment of indebtedness; except that such
provisions shall not apply to a public utility engaged in interstate commerce and
otherwise subject to the power of the public utilit
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(1) Negotiable instrument
required. No employer or agent or officer thereof shall issue, in payment of or as an
evidence of indebtedness for wages due an employee, any order, check, draft, note,
memorandum, or other acknowledgment of indebtedness unless the same is
negotiable and payable upon demand without discount in cash at a bank organized
and existing under the general banking laws of the state of Colorado or the United
States or at some established place of business in the state. The name and address
of the drawee shall appear upon the face of the order, check, draft, note,
memorandum, or other acknowledgment of indebtedness; except that such
provisions shall not apply to a public utility engaged in interstate commerce and
otherwise subject to the power of the public utilities commission. At the time of the
issuance of same, the maker or drawer shall have sufficient funds in or credit with
the bank or other drawee for the payment of same. Where such order, check, draft,
note, memorandum, or other acknowledgment of indebtedness is protested or
dishonored on the ground of insufficiency of funds or credit, the notice of
memorandum of protest or dishonor thereof shall be admissible as proof of
presentation, nonpayment, and protest.
(2) Direct deposit. Nothing in this article shall prohibit an employer from
depositing wages due or to become due or an advance on wages to be earned in an
account in any bank, savings and loan association, credit union, or other financial
institution authorized by the United States or one of the several states to receive
deposits in the United States if the employee has voluntarily authorized such
deposit in the financial institution of the employee's choice.
(2.5) Paycard. (a) Nothing in this article shall prohibit an employer from
depositing an employee's wages on a paycard, so long as the employee:
(I) Is provided free means of access to the entire amount of net pay at least
once per pay period; or
(II) May choose to use other means for payment of wages as authorized in
subsections (1) and (2) of this section.
(b) As used in this section, paycard means an access device that an
employee uses to receive his or her payroll funds from his or her employer.
(3) Scrip prohibited. No employer or agent or officer thereof shall issue in
payment of wages due, or wages to become due an employee, or as an advance on
wages to be earned by an employee any scrip, coupons, cards, or other things
redeemable in merchandise unless such scrip, coupons, cards, or other things may
be redeemed in cash when due, but nothing contained in this section shall be
construed to prohibit an employer from guaranteeing the payment of bills incurred
by an employee for the necessities of life or for the tools and implements used by
such employee in the performance of his or her duties.