WWE has announced on their website that WWE has fired Carlito Colon for failing a drug test and refusing to enter a drug rehabilitation program. This was Colon's first strike under the company's "Wellness Policy," as well as being the first time that WWE announced that a firing was due to a wrestler's refusal to go to rehab. In the wake of Eddie "Umaga" Fatu's death, WWE underwent public criticism for not announcing that he was fired under similar circumstances, so that may have led to an official policy change. WWE never reveals what substance is involved, but the rehab issue means that it was most likely some form of painkillers and/or tranquilizers.
According to WWE, when a wrestler under contract goes to rehab, the cost is paid for at least in part out of his or her payoffs over time. How much at a time and over the course how long they do this for is unknown. Wrestlers who no longer work for the company get their rehab fully paid for by the company. It would be interesting to get a more clear financial picture here, as it seems like a wrestler at the bottom of the card who thinks he's at risk of being cut soon anyway might be better off declining rehab so he can get fired and not have to pay for it, as WWE places the wrestlers in long, expensive programs.
Colon had somewhat suddenly found himself back in the spotlight after months of floundering, as his brother, Primo (Eddie) Colon had turned heel to re-form their tag team, this time as heels and henchmen to Ted DiBiase. Just as suddenly, the association was dropped with the Colons not on Raw and a broken down Virgil returning in their place. Colon always has a spot in his father's WWC promotion in Puerto Rico and the family is very well off, so it will be interesting to see where he turns up.