Colorado would become second state to limit when workers can be fired under union-backed ballot measure

Colorado would become the second “just-cause employment” state in the U.S. should a measure proposed by state union leaders make the 2026 ballot and pass.

Initiative 43 would prohibit companies with more than eight employees from firing or suspending a worker without just cause, which is defined in the measure as substandard performance, material neglect, repeated policy violation and gross insubordination. Conviction of a crime of “moral turpitude” — like murder, kidnapping and sexual assault — and an employer’s financial instability would also constitute just cause under the initiative. 

The proposal was filed by Dennis Dougherty, who leads the AFL-CIO in Colorado, and True Apodaca, political director at SEIU Local 105. 

“Colorado workers should expect common-sense workplace protections that prevent them from being unfairly fired,” Dougherty said. “Bad-faith employers arbitrarily fire workers to undermine worker rights, derail union organizing and take in record profits.”

A spokesperson for the Denver Metro Chamber of Commerce declined to comment on the proposal, saying, “There are a lot of moving pieces that we’re currently working with for this measure.”

The proposed ballot measure comes as the Colorado labor movement is pushing the legislature to pass Senate Bill 5, which would abolish a requirement in the Colorado Labor Peace Act that 75% of workers at a company sign off before a union can negotiate with an employer on union security. Union security is the term to describe when workers are forced to pay collective bargaining representation fees whether they are in a union or not.

Under Initiative 43, employees would have 180 days after their termination or suspension to file a lawsuit arguing that their employer didn’t have just cause. Employers who lose such lawsuits could be required to reinstate workers, pay them back pay, and cover the worker’s attorneys fees.

An employer could recover attorneys fees if they successfully fend off a lawsuit.

Colorado, like 48 other states, is currently an at-will employment state, meaning an employer can fire a worker at any time for any reason or no reason at all. The exception is for employees who are working under a contract. And an employer cannot fire a worker for their age, race, sex, a disability or their religion.

Initiative 43 is a long way from appearing on the 2026 ballot. Submitting a ballot initiative to Legislative Council Staff is the first step. Proposals then must be vetted by the state’s Title Board. Then, proponents must gather some 125,000 voter signatures to make the ballot. 

Making the ballot typically costs about $2 million.

There are other labor measures being pursued for the 2026 ballot. 

Jon Caldara, who leads the libertarian Independence Institute, is behind a proposal that would make Colorado a non-right-to-work state. The measure would amend the state constitution to prohibit employees from being forced to pay collective bargaining representation fees if they aren’t in a union. It’s a direct response to the Labor Peace Act repeal effort.

Getting a measure on the ballot that amends the state constitution is more difficult. 

Proponents must still gather some 125,000 voter signatures, but those signatures must include at least 2% of the registered voters in each of the state’s 35 state Senate districts. The measure would then require at least 55% of the vote to pass.

Gov. Jared Polis on Thursday refused to say whether he would sign Senate Bill 5, the union security legislation, should it reach his desk as is. The measure passed its first House committee Thursday — unamended — and is just a few votes away from clearing the legislature.

“My yardstick will be: Does it bring business and labor together in support of a way of organizing that’s more stable?” he said. “Does it preserve the right of workers to be able to have a say on whether union (fees) are required to be deducted from their paychecks?”

Polis appeared to be suggesting he would veto the measure if it passes the legislature without changes. He’s facing pressure from state and national union leaders to back the bill.

Business groups say their attempts to negotiate on Senate Bill 5 have been unsuccessful.

“We have made good faith offers to try and find a pathway to improve SB 5, but all of those proposals have been rejected by labor groups,” Colorado Chamber President and CEO Loren Furman said in a written statement.

The legislative session runs through early May.