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Wrongful Termination in Colorado: Understanding Your Strong Worker Protections

Wrongful termination in Colorado occurs when an employer fires you for an illegal reason. While Colorado is an at-will employment state—meaning employers can fire you for most reasons or no reason at all—the state provides stronger worker protections than most other states, including broader anti-discrimination coverage, unique lawful activities protections, and paid family leave rights.

Unlike employer-friendly states like Texas or North Carolina, Colorado law offers meaningful safeguards that go beyond federal minimums. If you were fired in Colorado, understanding these protections can help you determine if your termination was illegal.

At-Will Employment in Colorado: The Foundation

Colorado recognizes at-will employment as the default rule. Unless you have a written employment contract that specifies otherwise, your employer can:

  • Terminate you without advance notice
  • Fire you without providing a reason
  • Change your job duties, wages, or schedule at any time
  • End your employment for unfair (but not illegal) reasons

You also have the right to quit at any time without notice. At-will employment works both ways.

What At-Will Does NOT Mean

At-will employment has important exceptions. Your employer cannot fire you for:

  • Illegal reasons (discrimination, retaliation, refusing unlawful orders)
  • Violating public policy (exercising legal rights, reporting illegal activity)
  • Breaching an employment contract (if you have one)
  • Violating specific Colorado or federal statutes

The difference between an unfair termination and an illegal termination is critical. Colorado courts will not intervene in employment decisions unless your firing violated a specific law.

Colorado’s Strong Anti-Discrimination Protections

Colorado provides broader discrimination protections than federal law through the Colorado Anti-Discrimination Act (CADA) and enforcement by the Colorado Civil Rights Division (CCRD).

Protected Characteristics Under Colorado Law

CADA prohibits termination based on:

  • Race or color
  • Sex (including pregnancy, sexual orientation, gender identity, gender expression)
  • Religion or creed
  • National origin or ancestry
  • Age (18 and older under CADA; 40+ under federal law)
  • Disability (mental or physical)
  • Genetic information
  • Military or veteran status
  • Marital status (Colorado-specific protection)
  • Sexual orientation (protected since 2007)
  • Gender identity and transgender status (protected since 2007)
  • Pregnancy, childbirth, and related conditions

How Colorado Goes Beyond Federal Law

Broader employer coverage: CADA applies to employers with 1 or more employees. Federal Title VII only covers employers with 15+ employees. This means even the smallest Colorado businesses must comply with anti-discrimination law.

More protected classes: Colorado explicitly protected sexual orientation and gender identity years before federal courts interpreted Title VII to cover these characteristics. Marital status is also a Colorado-specific protection.

Younger age protection: Federal age discrimination law (ADEA) only protects workers 40 and older. CADA protects anyone 18 and older in state-law claims.

Example: You work for a 5-person startup. Your boss fires you after discovering you’re in a same-sex marriage. Federal Title VII doesn’t apply (employer too small), but CADA does. You can file a complaint with the CCRD for discrimination based on sexual orientation and marital status.

Colorado’s Unique “Lawful Activities” Protection

Colorado has one of the strongest off-duty conduct protection laws in the United States.

The Lawful Activities Statute (C.R.S. § 24-34-402.5)

Colorado law prohibits employers from firing you for engaging in lawful activities outside of work, including:

  • Legal marijuana use (off-duty, not impaired at work)
  • Tobacco use outside work
  • Legal alcohol consumption when off-duty
  • Any other lawful activity during non-work hours

This protection is unusual. Most states allow employers to fire workers for legal but undesirable off-duty conduct. Colorado does not.

Marijuana Use: Special Considerations

While Colorado legalized recreational marijuana, employers can still fire you for marijuana use in certain circumstances:

Employers CAN fire you if:

  • You’re impaired at work
  • Your position is safety-sensitive (operating machinery, driving, etc.)
  • It would violate federal law (federal contractors, DOT-regulated positions)
  • It would cause the employer to lose federal funding or contracts

Employers CANNOT fire you if:

  • You use marijuana legally off-duty
  • You’re not impaired at work
  • Your position doesn’t fall under federal restrictions
  • The employer has no federal contract requirements

Example: You smoke marijuana legally on Saturday night. You’re not impaired when you arrive at work Monday. Your employer fires you after you fail a random drug test. If your job isn’t federally regulated or safety-sensitive, this termination may violate Colorado’s lawful activities statute.

Case Law: Coats v. Dish Network (2015)

The Colorado Supreme Court ruled in Coats v. Dish Network that the lawful activities statute protects activities that are lawful under both state and federal law. Because marijuana remains illegal federally, the court held the statute didn’t protect off-duty marijuana use at that time.

However, subsequent legislative and regulatory developments have strengthened worker protections for lawful marijuana use in many contexts. The analysis depends on your specific industry and employer.

Retaliation Protections: Exercising Your Rights

Colorado law prohibits retaliation for engaging in protected activities. If your employer fires you for exercising legal rights, you may have a wrongful termination claim.

Protected Activities in Colorado

Filing workers’ compensation claims: Colorado explicitly prohibits firing employees for filing workers’ comp claims or testifying in workers’ comp proceedings.

Reporting safety violations: Complaining to OSHA or internal safety personnel about workplace hazards is protected.

Wage complaints: Reporting wage theft, unpaid overtime, or minimum wage violations to the Colorado Department of Labor or U.S. Department of Labor is protected.

Discrimination complaints: Filing complaints with CCRD or EEOC, or internally reporting harassment or discrimination, triggers retaliation protections.

Taking protected leave: Using FMLA leave, FAMLI leave (Colorado’s paid family leave), or other protected time off cannot result in termination.

Discussing wages: Colorado’s Equal Pay for Equal Work Act explicitly protects employees who discuss wages with coworkers. Firing someone for wage transparency is illegal.

Jury duty and voting: Colorado law protects employees who serve on juries or take time to vote.

Whistleblowing: Reporting illegal activity, fraud, or violations of law to government agencies is protected under various federal and state statutes.

Requesting reasonable accommodation: Asking for disability accommodations or religious accommodations is protected activity.

Example: You discover your employer is paying women less than men for the same work. You file a complaint with CCRD. Two weeks later, you’re fired for “restructuring.” The timing and circumstances suggest illegal retaliation, giving you a strong wrongful termination claim.

Colorado Paid Family and Medical Leave (FAMLI)

Effective January 1, 2024, Colorado implemented one of the most progressive paid leave programs in the nation.

FAMLI Coverage and Protections

Who’s covered: FAMLI applies to employers with 1 or more employees. Nearly all Colorado workers are eligible.

Leave entitlement: Employees can take up to 12 weeks of paid leave per year (16 weeks for pregnancy complications or multiple qualifying events).

Wage replacement: FAMLI provides up to 90% of wages during leave, capped at $1,100/week for 2024 (adjusted annually).

Qualifying reasons:

  • Your own serious health condition
  • Caring for a family member with a serious health condition
  • Bonding with a new child (birth, adoption, foster care)
  • Safe leave (domestic violence, stalking, sexual assault)
  • Military exigency

Job protection: Employers cannot fire you for taking FAMLI leave or retaliate against you for using or applying for benefits.

Example: You take 10 weeks of FAMLI leave after adopting a child. When you return, your employer says your position was eliminated due to “business needs.” If similarly situated employees who didn’t take leave kept their jobs, this may be FAMLI retaliation.

Learn more about Colorado paid leave in our Colorado – FAMLI Guide.

Public Policy Exception to At-Will Employment

Colorado courts recognize a public policy exception to at-will employment. You cannot be fired for:

  • Refusing to commit an illegal act
  • Performing a public duty (jury service, military service)
  • Exercising a legal right (filing workers’ comp, voting)
  • Reporting violations of law that threaten public safety or interest

This protection is broader than Texas’s Sabine Pilot exception but narrower than California’s extensive public policy protections.

Example: Your manager orders you to dump hazardous waste illegally to save disposal costs. You refuse and report the violation to environmental regulators. You’re fired. This violates Colorado’s public policy exception.

Breach of Employment Contract Claims

If you have a written employment contract specifying:

  • A fixed term of employment (“two-year contract”)
  • Termination only for cause
  • Progressive discipline procedures before termination

…then firing you in violation of these terms is breach of contract, regardless of at-will employment.

Implied Contract Exception (Limited in Colorado)

Colorado courts rarely recognize implied contracts from employee handbooks or oral promises. Most handbooks include disclaimers stating they don’t create contracts.

However, if a handbook explicitly promises specific termination procedures and doesn’t include an at-will disclaimer, courts may enforce those promises as an implied contract.

Practical reality: Unless you have a written, signed employment agreement, assume your employment is at-will.

How to Prove Wrongful Termination in Colorado

Proving wrongful termination requires showing your firing violated a specific law.

Elements of a Discrimination Claim

To prove discrimination under CADA or federal law, you must show:

  1. You belong to a protected class
  2. You were qualified for your job
  3. You suffered an adverse employment action (termination)
  4. The circumstances suggest discriminatory motive

Your employer can then provide a legitimate, non-discriminatory reason for the termination. You must prove this reason is pretext (a cover-up for the real illegal motive).

Strong Evidence Includes

  • Discriminatory statements by decision-makers (comments about age, race, gender, etc.)
  • Comparative evidence showing similarly situated employees outside your protected class were treated better
  • Timing evidence linking termination to protected activity (filing complaint, requesting accommodation)
  • Documentation showing positive performance before termination
  • Statistical evidence of disparate treatment
  • Witness testimony about discriminatory attitudes or practices

Example: You’re 62 years old with excellent performance reviews. Your new manager makes repeated comments about wanting to “refresh the team with younger talent.” Within two months, you’re fired for alleged poor performance while younger employees with worse metrics remain. You have emails documenting the age-based comments. This is strong evidence of age discrimination.

Evidence for Retaliation Claims

Retaliation claims require showing:

  1. You engaged in protected activity (complaint, workers’ comp claim, etc.)
  2. Your employer knew about the protected activity
  3. Your employer took adverse action (termination)
  4. Causal connection between the protected activity and adverse action

Timing is critical: If you’re fired shortly after protected activity (days or weeks), this creates an inference of retaliation.

Example: You file a workers’ compensation claim on January 5. You’re fired on January 20 for “restructuring” even though no other employees are terminated and your position is immediately posted online. The close timing and suspicious circumstances support a retaliation claim.

What Damages Can You Recover?

If you prove wrongful termination, Colorado law provides significant remedies.

Discrimination and Retaliation Claims (CADA)

Successful CADA claims can recover:

  • Back pay: All wages lost from termination until judgment
  • Front pay: Future lost earnings if reinstatement isn’t feasible
  • Compensatory damages: Emotional distress, mental anguish, loss of enjoyment of life
  • Punitive damages: If employer acted with malice or reckless indifference
  • Attorney’s fees and costs: CADA allows prevailing employees to recover legal costs
  • Reinstatement: Court may order your employer to give you your job back

No damage caps: Unlike federal Title VII claims, CADA has no caps on compensatory or punitive damages. This makes Colorado claims potentially more valuable than federal-only claims.

Federal Discrimination Claims (Title VII, ADA, ADEA)

Federal claims have statutory damage caps on compensatory and punitive damages:

  • Employers with 15-100 employees: $50,000 cap
  • Employers with 101-200 employees: $100,000 cap
  • Employers with 201-500 employees: $200,000 cap
  • Employers with 500+ employees: $300,000 cap

Back pay and front pay are not capped. ADEA (age discrimination) claims allow liquidated damages (doubling lost wages) if conduct was willful.

FAMLI Retaliation Claims

FAMLI violations can result in:

  • Lost wages and benefits
  • Reinstatement
  • Compensatory damages
  • Civil penalties paid to the state
  • Attorney’s fees

Public Policy Claims

Wrongful termination in violation of public policy can recover:

  • Lost wages
  • Emotional distress damages
  • Punitive damages
  • Attorney’s fees (in some cases)

Public policy claims have no statutory caps.

Statute of Limitations: Act Quickly

Colorado has strict deadlines for wrongful termination claims.

CADA Claims (Colorado Civil Rights Division)

6 months from termination: You must file a charge with CCRD within 180 days of the discriminatory act. This is one of the shortest deadlines in the nation.

After CCRD investigates and issues a right-to-sue letter, you have 90 days to file a lawsuit in state court.

Critical: Missing the 6-month deadline usually destroys your CADA claim. File immediately if you suspect discrimination.

Federal Discrimination Claims (EEOC)

300 days from termination: Colorado has a work-sharing agreement with the EEOC, extending the federal filing deadline from 180 to 300 days.

After receiving an EEOC right-to-sue letter, you have 90 days to file in federal court.

Dual filing: Filing with CCRD usually satisfies EEOC requirements and vice versa due to the work-sharing agreement.

FMLA and FAMLI Claims

2 years from violation (3 years if willful): Federal FMLA and Colorado FAMLI violations have a 2-year statute of limitations (3 years for willful violations).

Public Policy and Breach of Contract

2-3 years: Most public policy wrongful termination claims follow Colorado’s general tort statute of limitations (2 years). Breach of written contract claims have a 3-year deadline.

Workers’ Comp Retaliation

2 years: Claims for termination in retaliation for filing workers’ compensation must be filed within 2 years.

Don’t delay: When in doubt, consult an attorney immediately. Filing deadlines are strictly enforced.

Colorado vs. Other States: How Worker-Friendly Is Colorado?

Colorado offers stronger worker protections than most states, but not the strongest.

Protection Colorado Texas California
Anti-discrimination law applies to employers with… 1+ employees 15+ employees 5+ employees
Protected classes Extensive (including marital status, 18+ age) Mirrors federal law Very extensive
Off-duty lawful activities protection Yes (strong) No Limited
Paid family leave (state program) Yes (FAMLI – 12 weeks) No Yes (8 weeks)
CCRD/State agency filing deadline 6 months (SHORT) 180-300 days 3 years
Damage caps on state discrimination claims None Mirrors federal caps None
Equal pay transparency requirements Yes (strong) No Yes
Public policy wrongful termination Moderate (broader than TX) Very narrow Very broad
Final paycheck when fired Immediate Next payday Immediate

Key takeaway: Colorado is more worker-friendly than Texas but less protective than California. Colorado excels in anti-discrimination coverage, paid leave, and lawful activities protection.

Next Steps If You Were Wrongfully Fired in Colorado

If you believe your Colorado employer wrongfully terminated you, take these steps immediately:

1. Document Everything

Write down:

  • The exact date and circumstances of your termination
  • The reason given (if any)
  • Any discriminatory or retaliatory comments
  • Names of witnesses
  • Timeline of relevant events (complaints, protected activity, performance reviews)

Save:

  • Termination letter or email
  • Performance reviews
  • Emails and text messages
  • Company policies and handbooks
  • Medical documentation (for FMLA/FAMLI or disability claims)
  • Workers’ comp claim documents

Colorado law: You have the right to inspect and copy your personnel file. Request it in writing immediately.

2. Request Your Final Paycheck

Colorado requires employers to pay your final wages immediately upon termination if you were fired. If you quit, final wages are due by the next regular payday.

If your employer doesn’t comply, file a wage complaint with the Colorado Department of Labor and Employment.

3. File for Unemployment Benefits

Apply for unemployment through Colorado UI within 10 days of job loss.

Your employer may contest your claim, but you should still apply. Receiving unemployment doesn’t prevent you from pursuing a wrongful termination claim.

4. Determine If You Have a Legal Claim

Ask yourself:

  • Did my employer violate CADA (discrimination based on protected characteristic)?
  • Was I fired in retaliation for protected activity?
  • Did I lose my job for refusing to break the law?
  • Was I terminated for taking FAMLI or FMLA leave?
  • Did my employer breach an employment contract?

If the answer to any question is “yes” or “maybe,” consult an attorney.

5. File Administrative Charges (If Applicable)

For discrimination or harassment:

  • Colorado Civil Rights Division: File within 6 months

For wage violations:

  • Colorado Department of Labor – Wage and Hour Division
    • Phone: 303-318-8441
    • File within 2 years

For FAMLI violations:

For FMLA violations:

  • U.S. Department of Labor – Wage and Hour Division
    • Phone: 1-866-487-9243
    • File within 2 years

6. Consult an Employment Attorney

Most employment attorneys offer free initial consultations. Bring all documentation to this meeting.

An attorney can:

  • Evaluate whether you have a valid claim
  • Calculate potential damages
  • Navigate filing deadlines (especially the short 6-month CCRD deadline)
  • Negotiate settlement or represent you in court

Many employment attorneys work on contingency (you pay only if you win), making legal representation accessible.

7. Preserve Your Rights

Don’t sign anything without legal review. Severance agreements often include releases waiving your right to sue. An attorney can:

  • Review severance terms
  • Negotiate better terms
  • Advise whether accepting severance is in your best interest

8. Focus on Your Next Steps

Even with a strong legal claim, litigation is stressful and time-consuming. Consider all options:

  • Settlement negotiation
  • Administrative resolution through CCRD
  • Finding new employment while pursuing your claim
  • Weighing the costs and benefits of litigation

Resources for Colorado Workers

Government Agencies

Colorado Civil Rights Division (CCRD)

  • Discrimination and retaliation complaints
  • Phone: 303-894-2997
  • Website: ccrd.colorado.gov

Colorado Department of Labor and Employment

Colorado FAMLI Division

Colorado Division of Workers’ Compensation

Equal Employment Opportunity Commission (EEOC)

  • Federal discrimination claims
  • Phone: 1-800-669-4000
  • Website: eeoc.gov

U.S. Department of Labor – Wage and Hour Division

Legal Assistance

Colorado Legal Services

Colorado Bar Association – Lawyer Referral Service

  • Find an employment attorney
  • Phone: 303-860-1115
  • Website: cobar.org

Frequently Asked Questions

Can I be fired for no reason in Colorado?

Yes. Colorado is an at-will employment state, so employers can fire you without giving a reason—unless the real reason is illegal (discrimination, retaliation, public policy violation).

How long do I have to file a wrongful termination claim in Colorado?

It depends on the type of claim:

  • CCRD discrimination claims: 6 months (180 days)
  • EEOC federal claims: 300 days
  • FMLA/FAMLI violations: 2 years
  • Public policy claims: 2 years
  • Breach of contract: 3 years

The 6-month CCRD deadline is extremely short. Act immediately if you suspect discrimination.

Can I be fired for using marijuana in Colorado?

It depends. Colorado protects off-duty lawful marijuana use, but employers can fire you if:

  • You’re impaired at work
  • Your job is safety-sensitive
  • Federal law prohibits marijuana use in your position (federal contractors, DOT-regulated workers)
  • Your employer would lose federal funding

When must I receive my final paycheck in Colorado?

  • Fired (involuntary): Immediately upon termination
  • Quit (voluntary): Next regular payday

Colorado is one of few states requiring immediate payment when fired.

Are there damage caps on wrongful termination claims in Colorado?

  • CADA (state law) claims: No caps on compensatory or punitive damages
  • Federal Title VII/ADA claims: Caps range from $50,000 to $300,000 depending on employer size
  • Back pay and front pay: Never capped

This makes Colorado state-law claims potentially more valuable than federal-only claims.

Can I collect unemployment if I’m fired in Colorado?

It depends on the reason:

  • Fired for reasons beyond your control: You can collect unemployment
  • Fired for misconduct: You may be disqualified
  • Quit voluntarily: Generally not eligible unless you had “good cause”

Apply through Colorado UI within 10 days.

Do I need a lawyer for a wrongful termination claim?

You’re not required to have a lawyer, but it’s highly recommended. Colorado’s 6-month CCRD filing deadline is one of the shortest in the nation. Most employment attorneys offer free consultations and work on contingency (no upfront cost).

What’s the average wrongful termination settlement in Colorado?

Settlements vary widely based on:

  • Type of violation
  • Your salary and tenure
  • Strength of evidence
  • Damages suffered

Settlements range from $20,000 to $500,000+. Most cases settle for $50,000-$150,000. Cases with strong evidence and significant damages can settle or result in verdicts well above these ranges.

Related Topics

Get Help Understanding Your Rights

Unsure if your termination violated Colorado law? Get a free case evaluation from an employment law expert who understands Colorado’s worker-friendly protections.

Colorado offers some of the strongest employment protections in the nation—including broad anti-discrimination coverage, paid family leave, and lawful activities protection. If your employer violated these laws, you may be entitled to significant damages.

An experienced Colorado employment attorney can review your specific situation and explain your rights under state and federal law.

References

  • Colorado Anti-Discrimination Act (CADA), C.R.S. §§ 24-34-301 to 24-34-406
  • Colorado Lawful Activities Statute, C.R.S. § 24-34-402.5
  • Colorado FAMLI Act, C.R.S. §§ 8-13.3-501 to 8-13.3-523
  • Colorado Equal Pay for Equal Work Act, C.R.S. § 8-5-101 et seq.
  • Colorado Civil Rights Division – ccrd.colorado.gov
  • Equal Employment Opportunity Commission (EEOC) – eeoc.gov
  • Title VII of the Civil Rights Act of 1964
  • Americans with Disabilities Act (ADA)
  • Age Discrimination in Employment Act (ADEA)
  • Family and Medical Leave Act (FMLA)
  • Coats v. Dish Network, LLC, 350 P.3d 849 (Colo. 2015)

Disclaimer: The information provided on this page is for general informational purposes only and does not constitute legal advice. Employment laws vary by state and change frequently. For advice specific to your situation, please consult with a licensed employment attorney in Colorado. Employment Law Aid is not a law firm and does not provide legal representation.