['Compensation']

['Compensation', 'Payroll']

11/06/2025

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REGSENSE
Topic Search
Compensation - Compensation
State Info

State Info

Direct deposit provisions - Colorado

RegSense State Info Compensation Colorado Payroll Compensation Best Results HR Management English Focus Area Human Resources

In Colorado, direct deposit is only allowed if the employee voluntarily authorizes it. Payment must go to a bank or other financial institution of the employee’s choosing, so long as it is FDIC insured.

Employers must offer alternative payment methods, such as paper checks, cash, or payroll cards, as long as they are:

Negotiable and payable on demand
Free of any fees or penalties
Accessible in full on payday

Related information

Compensation ezExplanation
Payroll ezExplanation
Fair Labor Standards Act (FLSA) ezExplanation

Citations

C.R.S. 8-4-102
7 CCR 1103-7
Colorado Dept. of Labor and Employment Interpretive Notice and Formal Opinion #3B
15 USC 1693 et seq. — Electronic Funds Transfer Act (EFTA)
12 CFR Part 1005 — Electronic Fund Transfers (Regulation E)
FOH Chapter 30 RECORDS, MINIMUM WAGE, AND PAYMENT OF WAGES (U.S. DOL – page 11, Sec. 30c)
29 CFR 531.35 — “Free and clear” payment; “kickbacks”

['Compensation']

['Compensation', 'Payroll']

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