Is Colorado an at-will state?

“The Colorado Supreme Court first recognized the implied-contract exception to the employment-at-will doctrine in Keenan, 731 P.2d at 711-12. Under this theory, the employee must show that the employer’s promulgation of termination policies or procedures was an offer and that the employee’s initial or continued employment constituted an acceptance of that offer.”

Before you fire someone: the step-by-step checklist

What it means for Colorado employers

The most useful single source on Colorado at will is Chapter 31 (Wrongful Discharge) of the Colorado pattern civil jury instructions. It sorts wrongful discharge into contract claims (fixed-term contracts, just-cause contracts, implied contracts from termination policies) and tort claims (the Lorenz public policy discharge), and its Notes on Use collect the Colorado cases that shape each one. (Colorado Pattern Civil Jury Instructions, Chapter 31 (Wrongful Discharge))

On the contract side, Keenan (1987) is the anchor. A termination policy in a written manual binds the employer when it amounted to an offer that the employee accepted by starting or continuing to work. A Colorado federal court, citing Kroekel (D. Colo. 1999), states the same test for a similar oral policy statement (D. Colo. No. 1:19-cv-00694). Whether that happened is usually a question of fact. The same notes give an employer three levers. A clear and conspicuous disclaimer of any intent to be bound by handbook termination procedures can negate a contract as a matter of law, as several Colorado Court of Appeals decisions listed in the notes held. The right to change handbook termination procedures is presumed even when not stated, and an employee cannot rely on a procedure the employer changed with reasonable notice before the discharge (Ferrera v. Nielsen, 1990). And vague assurances of fair treatment are unenforceable (Hoyt v. Target Stores, as cited in the notes); a contractual good faith promise has to be specific enough for a court to enforce (Valdez v. Cantor, 1999). (Colorado Pattern Civil Jury Instructions, Chapter 31 (Wrongful Discharge); Order, D. Colo. No. 1:19-cv-00694-WJM (Keenan))

Keenan also opens a promissory estoppel route for termination procedures: the court looks at whether the employer should reasonably have expected its manual to be read as a commitment and whether employees relied on it. Colorado treats that claim as equitable, so it is decided by the judge rather than a jury. (Colorado Pattern Civil Jury Instructions, Chapter 31 (Wrongful Discharge); Order, D. Colo. No. 1:19-cv-00694-WJM (Keenan))

On the tort side, Lorenz set the elements, and the jury instructions split the claim in two. Instruction 31:12 covers a firing for refusing an employer directive the worker reasonably believed would violate a statute, rule or regulation on public health, safety or welfare, undermine a basic civic duty, or block an important work-related right; the employer has to have known, or reasonably should have known, the reason for the refusal. Instruction 31:13 covers a firing for exercising such a right or performing a public duty, again with the employer's awareness. Because Colorado will not turn a broken good faith covenant into a tort (Decker), Lorenz is the channel for that kind of complaint. (Colorado Pattern Civil Jury Instructions, Chapter 31 (Wrongful Discharge))

Two Colorado separation rules sit alongside at will. Under C.R.S. § 8-4-101(14)(a)(III) as quoted in Wage Protection Rule 2.17, an employer that provides paid vacation pays all earned vacation at separation, and Rule 2.17.2 does not allow any earned vacation to be forfeited. Under 7 CCR 1101-2, Rule 7.3.2.2, every separating worker receives a notice of the availability of unemployment insurance; CDLE's form for it says it is given in hard copy or electronic format. The general deadline for a fired employee's final wages is not verified yet on this site. (Wage Protection Rules, 7 CCR 1103-7, Rule 2.17 (effective February 1, 2026); 7 CCR 1101-2, Rule 7.3.2.2; CDLE, Notice of Potential Availability of Unemployment Insurance Benefits)

Exceptions and special cases

• Implied contract from handbook or manual termination policies: recognized, defeated by a clear and conspicuous disclaimer. Continental Air Lines, Inc. v. Keenan, 731 P.2d 708 (Colo. 1987); CJI-Civ. 31:4 Notes on Use; D. Colo. No. 1:19-cv-00694-WJM. (Colorado Pattern Civil Jury Instructions, Chapter 31 (Wrongful Discharge); Order, D. Colo. No. 1:19-cv-00694-WJM (Keenan))
• Promissory estoppel based on termination procedures in a manual: recognized under Keenan, 731 P.2d at 712, as described in the CJI-Civ. Chapter 31 notes. (Colorado Pattern Civil Jury Instructions, Chapter 31 (Wrongful Discharge))
• Wrongful discharge in violation of public policy: recognized. Martin Marietta Corp. v. Lorenz, 823 P.2d 100 (Colo. 1992); CJI-Civ. 31:12 and 31:13; D. Colo. No. 1:15-cv-02418. (Colorado Pattern Civil Jury Instructions, Chapter 31 (Wrongful Discharge); Order, D. Colo. No. 1:15-cv-02418 (Lorenz; Decker))
• Tort for breach of the covenant of good faith and fair dealing in an employment contract: not recognized. Decker v. Browning-Ferris Industries of Colorado, Inc., 931 P.2d 436 (Colo. 1997). (Order, D. Colo. No. 1:15-cv-02418 (Lorenz; Decker))

Worked examples

A handbook disclaimer on the first page

A Denver software firm's handbook opens with a boxed, bold statement that its discipline and termination procedures are guidelines and create no contract. The Colorado jury instruction notes list several Court of Appeals decisions in which a clear and conspicuous disclaimer like this negated an implied contract claim based on the handbook. The notes speak of disclaimers that are clear and conspicuous, so visibility is part of the test. (Colorado Pattern Civil Jury Instructions, Chapter 31 (Wrongful Discharge))

Updating the termination procedure mid-year

A Colorado Springs hospital replaces its four-step dismissal procedure with a shorter one and emails the new version to all staff in April. Ferrera v. Nielsen, as summarized in the notes, presumes the employer reserved the right to change such procedures and holds that an employee cannot rely on the old version once reasonable notice of the change was given before the discharge. (Colorado Pattern Civil Jury Instructions, Chapter 31 (Wrongful Discharge))

What is handed over at a separation on Friday, October 2, 2026

A Fort Collins retailer ends an at-will job on Friday, October 2, 2026. The employee has 36 hours of earned, unused vacation at $22 per hour, so $792 of vacation pay is part of the wages owed at separation under C.R.S. § 8-4-101(14)(a)(III), and no policy can forfeit it (Rule 2.17.2). The retailer also gives the CDLE Notice of Potential Availability of Unemployment Insurance Benefits, which Rule 7.3.2.2 requires at separation. (Wage Protection Rules, 7 CCR 1103-7, Rule 2.17 (effective February 1, 2026); 7 CCR 1101-2, Rule 7.3.2.2; CDLE, Notice of Potential Availability of Unemployment Insurance Benefits)

How to act on it

At-will: Colorado and neighboring states

Each state links to its rulebook. Only rules we verified are shown.

Questions about Colorado at-will rules

The verified rules behind this page (5)

• Implied contract: Colorado recognizes an implied-contract exception: termination policies in a handbook or manual can bind the employer if they were an offer the employee accepted by starting or continuing work (Continental Air Lines v. Keenan); a clear and conspicuous disclaimer defeats the claim. (Colorado Pattern Civil Jury Instructions, Chapter 31, Instruction 31:4, Notes on Use, citing Continental Air Lines, Inc. v. Keenan, 731 P.2d 708 (Colo. 1987); Order, No. 1:19-cv-00694-WJM (D. Colo. Sept. 28, 2020), citing Cont'l Air Lines v. Keenan, 731 P.2d 708, 711 (Colo. 1987); verified Sep 24, 2026)
• Public policy: Colorado recognizes a tort claim for wrongful discharge in violation of public policy (Martin Marietta Corp. v. Lorenz): a fired employee has a claim if the discharge contravenes a clear mandate of public policy. (Colorado Pattern Civil Jury Instructions, Chapter 31 (Wrongful Discharge), Instruction 31:12, Notes on Use, citing Martin Marietta Corp. v. Lorenz, 823 P.2d 100 (Colo. 1992); Order, No. 1:15-cv-02418 (D. Colo.), discussing Martin Marietta Corp. v. Lorenz, 823 P.2d 100 (Colo. 1992); verified Sep 24, 2026)
• Good faith covenant: Colorado does not allow a tort claim for breach of the covenant of good faith and fair dealing in an employment contract (Decker v. Browning-Ferris); the public-policy wrongful discharge tort serves that role. (Colorado Pattern Civil Jury Instructions, Chapter 31, Notes on Use, citing Decker v. Browning-Ferris Indus., Inc., 931 P.2d 436 (Colo. 1997); Order, No. 1:15-cv-02418 (D. Colo.), discussing Decker v. Browning-Ferris Industries of Colorado, Inc., 931 P.2d 436 (Colo. 1997); verified Sep 24, 2026)
• In Colorado, earned vacation pay counts as wages. If an employer provides paid vacation, it must pay all earned vacation at separation. Policies may cap accrual at one year's worth of vacation pay or more, but they may not forfeit any earned (accrued) vacation pay. (C.R.S. § 8-4-101(14)(a)(III), as quoted in Wage Protection Rules 7 CCR 1103-7, Rule 2.17 (effective February 1, 2026); Wage Protection Rules 7 CCR 1103-7, Rule 2.17.2 (edition effective January 1, 2025); verified Sep 24, 2026)
• Colorado employers must give every worker, upon separation from employment, a notice of the availability of unemployment insurance (hard copy or electronic). CDLE's form 'Notice of Potential Availability of Unemployment Insurance Benefits' also asks for the employee's dates, earnings and the reason for separation. (7 CCR 1101-2, Rule 7.3.2.2; CDLE, Notice of Potential Availability of Unemployment Insurance Benefits (form); verified Sep 24, 2026)

Sources (7)

• Colorado Pattern Civil Jury Instructions, Chapter 31 (Wrongful Discharge)
• Order, D. Colo. No. 1:19-cv-00694-WJM (Keenan)
• Order, D. Colo. No. 1:15-cv-02418 (Lorenz; Decker)
• Wage Protection Rules, 7 CCR 1103-7, Rule 2.17 (effective February 1, 2026)
• 7 CCR 1101-2, Rule 7.3.2.2
• CDLE, Notice of Potential Availability of Unemployment Insurance Benefits
• Wage Protection Rules 7 CCR 1103-7, Rule 2.17.2 (edition effective January 1, 2025)

Checked Sep 24, 2026 · How we verify every rule · Report an error

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