At-Will Employment in Colorado
Yes, Colorado is an at-will employment state
Colorado is at-will with public policy and implied contract exceptions. Colorado has additional statutory protections including the Lawful Off-Duty Activities statute (C.R.S. 24-34-402.5), which prohibits termination for legal activities conducted off-premises during non-work hours.
Recognized exceptions in Colorado
| Public policy exception | Yes |
|---|---|
| Implied contract exception | Yes |
| Covenant of good faith | No |
| Key statute | C.R.S. SS 24-34-402.5 (lawful off-duty activities) |
Key case law
Continental Air Lines v. Keenan (1987) recognized implied contract exception.
At-will Employment in Colorado: what you need to know
Colorado is an at-will employment state that recognizes the public policy and implied contract exceptions. Colorado is at-will with public policy and implied contract exceptions. Colorado has additional statutory protections including the Lawful Off-Duty Activities statute (C.R.S. 24-34-402.5), which prohibits termination for legal activities conducted off-premises during non-work hours. While at-will employment means your employer can generally terminate you at any time without cause, these exceptions provide important protections in specific circumstances.
The public policy exception in Colorado means your employer cannot fire you for reasons that violate a clear public policy. This typically includes termination for refusing to perform an illegal act, exercising a legal right (such as filing a workers' compensation claim or voting), reporting illegal activity (whistleblowing), or performing a public obligation like jury duty. If you believe you were fired for one of these reasons, you may have a wrongful termination claim.
The implied contract exception in Colorado means that your employer's statements, policies, or practices can create an implied promise of continued employment. If your employee handbook states that you will only be terminated for cause, or if your employer made verbal promises about job security during hiring, those statements may limit the employer's ability to fire you without reason. Colorado courts evaluate the totality of the circumstances, including the language of handbooks, the duration of employment, and any oral assurances made during hiring.
Understanding at-will employment in Colorado is important because it affects your rights in nearly every aspect of the employment relationship. Even in an at-will state, your employer cannot fire you for illegal reasons, such as discrimination based on race, sex, age, disability, or other protected characteristics. Federal laws like Title VII, the ADA, and the ADEA apply in Colorado regardless of the at-will doctrine. If you believe you were terminated for a discriminatory reason, that is a separate legal claim from the at-will analysis.
More Colorado workplace laws
Check other workplace law topics for Colorado:
Frequently asked questions about at-will employment in Colorado
Yes. Colorado is an at-will employment state. Your employer can terminate you at any time for any lawful reason, and you can leave at any time.
Colorado recognizes the public policy exception, the implied contract exception. These exceptions provide protections in specific circumstances even though the default rule is at-will.
Generally yes. In an at-will state, your employer does not have to give a reason for termination. However, they cannot fire you for an illegal reason such as discrimination, retaliation for whistleblowing, or exercising a legal right.
No. Terminating an employee for filing a workers' compensation claim is illegal in every state, including Colorado. This is a form of retaliation that violates public policy. If you believe you were fired for filing a workers' comp claim, consult an employment attorney.
It can. If the handbook contains specific language promising that employees will only be terminated for cause, or outlines a progressive discipline process, it may create an implied contract that limits at-will termination.