10 Things to Know about

Wrongful Termination in
Colorado
Published by Denver Labor Law

This publication is for information only and should not be used as a substitute for the legal counsel of a licensed attorney. Downloading or reading
this document does not create an attorney-client relationship. If you believe you were wrongfully terminated in Colorado or any other state then
you should contact an employment lawyer in your area ASAP.

________________________________

When Colorado employers terminate employees the employees often wonder whether what
happened to them was wrongful termination and whether there are grounds for a lawsuit against
the employer. While a firing for a nonsense reason might be wrong that is a different standard
from the legal term of wrongful termination in which a fired employee can sue for wrongful
termination under federal or Colorado employment law.

1. Wrongful termination is an exception to the employment at

will doctrine
Employees in Denver and other parts of Colorado are typically at-will employees. At-will
employees under Colorado labor and employment law may be fired for any reason—a good
reason or a bad reason—so long as it is not prohibited by law. Colorado and federal labor and
employment law carve out exceptions to the at-will employment doctrine that limit the at-will
doctrine. An employer may not terminate an employee in violation of one of these exceptions.
An employer that does risks the former employer pursuing a wrongful termination or wrongful
discharge claim.

2. Unemployment and Wrongful Termination in Colorado

A termination might be “wrongful” in the sense that the employer’s reason for firing the
employee was a bad reason or based on bad information; however, this does not create a legal
claim for wrongful termination except where federal or Colorado law has created a legal claim
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against the employer for wrongful termination. Although there are few reasons a legal claim for
wrongful termination may be pursued against an employer in court, employees can file a claim
for unemployment benefits.

The standard for wrongful termination in an unemployment benefits claim is broader than the
standard to file a lawsuit for wrongful termination. In a claim for unemployment benefits the
investigator or hearing official may consider that a bad reason created a wrongful termination
even if the employee could not bring a successful lawsuit.

Through the rest of the document the term “wrongful termination” will apply to legal claims
rather than the broader standard for unemployment benefits in Colorado.

3. The statute of limitations to act on a wrongful termination

claim can be extremely short
Many wrongful termination claims have brief statutes of limitation period that requires
employees to act quickly to pursue claims. Many claims also require specific procedures to pursue
claims. Employees should schedule consultations with employment law attorneys to discuss their
claims before taking action on a claim. The first step in a wrongful termination claim often sets
the tone for future action on the claim. Working with a Colorado wrongful termination attorney is
often a good idea.

4. Employment discrimination is a common basis for wrongful

termination claims in Colorado
Federal and Colorado employment law prohibit discrimination in the workplace on the basis of
several characteristics or traits. These include:

• Age
• Race
• Ethnicity
• National Origin
• Disability
• Sex
• Gender
• Sexual orientation
• Religion

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It is illegal for an employer to dismiss an employee because of any of these characteristics or
traits. (Except for a bona fide occupational qualification.) An employee wrongfully terminated
on an unlawful discriminatory basis can recover damages, including attorney fees, from the
employer. If you believe you have this type of wrongful termination claim then you should
contact Denver employment lawyers right away. These claims require you to pursue specific
steps within limited time periods.

Employees pursuing wrongful termination lawsuits in Colorado for retaliation caused by opposing
discrimination in the workplace must begin in most cases by filing a complaint with the EEOC or
CCRD. Once the former employee receives the right to sue letter there is a limited time period to
pursue a wrongful termination lawsuit in Colorado or federal court.

5. Retaliation for complaining about employment discrimination

can create a wrongful termination claim in Colorado
Wrongful termination of employment can be the result of a Colorado employer retaliating against
an employee for complaining about unlawful activity in the workplace or for exercising a legal
right related to the job. Retaliation as an unlawful employment practice is a growing problem.
The Equal Employment Opportunity Commission’s research on complaints related to
employment discrimination found retaliation complaints exceeded all other types of
discrimination.

Retaliation occurs when an employer takes an adverse employment action against an employee
engaging in a protected activity. Protected activities include:

1. Complaining about unlawful activity at work like employment discrimination, hostile

work environment, wrongful denial of FMLA leave, failure to pay overtime; or
2. Exercising a legal right at work like requesting FMLA leave or voting for union
representation at work.

Retaliation for participating in an employment discrimination complaint or proceeding is

prohibited by federal and Colorado employment law. The Colorado Anti-Discrimination Act (Co.
Rev. Stat. 24-34-402) protects employees under state law. Applicable federal laws include Title
VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.), the Americans with Disabilities Act
(ADA), Age Discrimination in Employment Act (ADEA) and others.

6. An employer wrongfully terminates an employee when the

firing violates Colorado public policy

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Wrongful termination claims for violations of public policy include several types of wrongful
terminations under various federal and Colorado statutes in addition to Colorado common law.
An employee with a wrongful termination claim for violation of public policy may recover lost
wages plus a variety of other damages. If you believe you were wrongfully terminated then you
should contact a wrongful termination lawyer in Colorado.

Public policy is the underlying set of principles upon which a government is based. Actions that
violate public policy are generally those that are illegal, dangerous, or undermine important
rights. Wrongful termination claims for violations of public policy protect employees from
becoming instruments of social harm either to themselves or to other members of society.

An employer wrongfully terminates an employee in violation of Colorado public policy when

the employer terminates the employee because:
• The employee refused to engage in an illegal or dangerous activity; or
• The employee tried to exercise a legal right or public duty and the employer terminated
the employee in retaliation; or
• The employer terminated the employee to prevent the employee from exercising a legal
right or public duty.

Employees may bring claims for wrongful termination in Colorado through a lawsuit in most
cases. The elements of a wrongful termination claim for violating public policy in Denver and
other parts of Colorado include:
1. The defendant employer employed the plaintiff as an employee.
2. The employer terminated the plaintiff’s employment.
3. The termination was motivated by a reason against public policy.

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