PRAGMATIC ISSUES

What’s Happening?

Layoff notifications have rolled out in Denver, with affected employees being informed on the day of their separation. Immediately upon notification, they’ll be placed on paid administrative leave for 30 days and continue receiving salary and benefits. 

Most lose benefits after that, although medical, dental, and vision coverage remain active through September 30. Eligible employees will receive a severance package, variable based on tenure, with payments delivered within 14 days after their official end date.

As part of that severance package employees must sign a legal waiver and give up any rights to sue which is pretty standard in the private sector. 

The layoff push is part of Mayor Mike Johnston’s effort to close a projected $50 million deficit for 2025 and a looming $200–$250 million budget gap for 2026.

One local media outlet referred to the terminations as firings, to be clear these are layoff’s, employees are not being fired, wording matters a lot in news like this. 

Why are so many upset?

Many who take municipal or state jobs aren’t in it for the money so to speak. The wages are not superior to the private industry but, workers generally receive a yearly increase and generally they are not-facing layoffs and termination is usually not in the cards for municipalities or state employees. 

Those with seniority are also one of the protected classes-meaning it’s difficult for municipalities and states to get rid of problematic and/or low performing employees who have seniority. I am not saying this is the case here in Denver however. 

Pubic trust in Denver’s leadership is has been eroded due to Denver’s inability to budget and because the city spent an estimated $365 million on illegal immigration efforts.

In July, Denver’s Career Service Board eliminated long-standing seniority protections—including the ability for senior staff to “bump” less experienced employees—and replaced them with a merit-based system. Layoff decisions are now based on:

25%: Length of service

10–35% each: Performance, skills, and abilities.

These changes drew significant protest:

Union and Council pushback—many city council members and workers criticized the shift, saying it unfairly diminishes seniority and introduces bias.

Legal concerns—city attorneys warned that subjective merit-based decisions could open the city to litigation, potentially nullifying any cost savings – which will happen, the city is going to face wrongful termination allegations like it or not. Sure they will drag it out a bit waiting until the public no longer notices then they will offer a settlement in the vain hope that they can drag it out long enough the payouts are less likely to be newsworthy. 

This has in turned caused worker disillusionment and distrust. Many employees feel betrayed by leadership, especially given the abrupt removal of seniority protections and the lack of transparency around who will be laid off.

Longtime employee Audra Burgos, who’s served for nearly four decades, is deeply unsettled: “Seniority should matter … it’s hard because people are going to be affected dramatically.”

Critics accuse the administration of “operating in the dark,” eroding trust amid secrecy around the layoffs.

Whatsmore is that this has severely eroded the publics trust that Denver leadership knows how to budget. Some surrounding municipalities did that and they are not looking at mass layoffs. 

Here is what employees who are faced with a layoff receive:

Based on the city’s existing guidelines, severance benefits are tiered by tenure:

< 1 year: 2 weeks of pay

1–5 years: 4 weeks

5–15 years: 6 weeks

≥ 15 years: 8 weeks

Ineligible: Probationary, retiring, and “on-call” employees.

What Nearby Cities Are Doing

Aurora, Colorado

Budget Gap ≈ $25 million (2026 forecast): Aurora is projecting a sizable general and capital fund shortfall—now expected to exceed $25 million, more than double earlier estimates.  

Strategies under consideration:

Drawing from reserves (up to $12 million from the recession fund in 2026, followed by $4 million in 2027)

Raising fees (e.g., transportation maintenance, possibly boosting the 911 fee)

Delaying infrastructure or park projects

Instituting targeted spending cuts or furloughs

Transferring funds from conservation, parks development, or green funds

Using both “top-down” (executive) and “bottom-up” (departmental) cuts  

Unlike Denver, Aurora has not yet announced any layoffs—but they’ve put nearly everything on the table, including furloughs and pay adjustments, to avoid them.

Lakewood, Colorado

Not emerging layoffs: There’s no public indication of upcoming municipal job cuts.

Federal employee anxiety: The city is closely monitoring potential federal layoffs at the Denver Federal Center, which could have broader economic impacts on local businesses and workers.  

Other Neighboring Cities

No clear data available on layoffs or budget-driven workforce reductions in Littleton, Westminster, or others at this time. Most are not signaling immediate personnel impacts.

Impacted Denver Employees Possible Recourse

Due Process & Lawsuit Rights

Former mayoral candidate Dr. Lisa Calderón has encouraged affected employees to exercise their rights if they believe due process was violated—including considering legal action.  

Law firms are already gearing up to represent employees challenging the process.  

State Personnel Board Appeals (for State Employees)

Although Denver city employees are municipal and not state classified, the Colorado State Personnel Board (SPB) offers a path for state-level classified employees to appeal layoffs if deemed arbitrary or unlawful. Appeals must be filed within 10 days.  

Union Representation & Duty of Fair Representation

Union involvement: City employee unions (e.g., Teamsters, Local 158) may file grievances or negotiate on behalf of members.

Legal obligations: The union must act fairly, impartially, and not in bad faith. Failure to do so may result in a legal claim for duty of fair representation.  

Anti-Discrimination Protections

Employees who believe layoffs were discriminatory (e.g., based on age, tenure, or union activities) can file charges with relevant agencies:

EEOC (federal)

Colorado Civil Rights Division (CCRD) (state)

The union can assist, even for non-union members.  

For Comparison: Denver vs. Aurora

Aurora is acting cautiously with financial tools and flexibility—and hasn’t resorted to layoffs yet.

Denver’s employees, facing immediate layoffs, should:

Consult union reps and understand contract protections

Document communications and performance records

Seek legal guidance—especially concerning procedural fairness or discrimination

Explore filing grievances internally or appeals (where eligible)

Consider involving the EEOC, CCRD, or state labor advocates if applicable

Timing is critical—some processes (like SPB appeals) have very tight deadlines.

It is important to remember that no matter how you feel about the leadership here in Denver, 171 individuals are going to be jobless during one of the worst times to be jobless, they are likely going to have to work for less than what they were making, they will not have the generous benefit/time-off packages that they had, they will no longer have promised yearly increases and they are going to struggle with the differences between working in the private sector vs the public sector because working in the private sector offers zero protections.