Chapter 12 - § 12.1 • INTRODUCTION

• Jurisdiction: Colorado

§ 12.1 • INTRODUCTION

Colorado is an "at-will" employment state. While an at-will employee may generally be demoted or terminated for no reason, or even an arbitrary or irrational reason, there is no right to punish an employee for an unlawful reason or a purpose that contravenes fundamental public policy. Thus, public policy wrongful discharge claims represent one of the most common exceptions to the doctrine of employment at-will, with a majority of jurisdictions, including Colorado, recognizing some form of public policy wrongful discharge.¹ Counsel should be especially sensitive to this theory of recovery because a public-policy-based claim sounds in tort and, therefore, potentially permits recovery of compensatory and punitive damages — both unavailable in more commonly seen wrongful termination contexts. Further, to the extent a claim directly...