Is Colorado a Right-to-Work State? Laws & All You Should Know

This might sound like an odd way to start, but the simple answer to the question, “Is Colorado a right-to-work state?” is no. However, a ton of factors contribute to that simple answer, all of which will be covered in the course of this post. Just hang on a little longer to your device.

Let’s hit the road…

Is Colorado a Right-to-Work State: Overview

There is often a lot of misunderstanding in labor and employment law because of the excessive terms and phrases that come with it. While these terms have specific legal meanings, they are usually misunderstood by employees.

One of those most misunderstood terms in labor and employment law across the United States, especially in Colorado is “right to work.” It’s repeatedly mixed up with “at-will employment” and misinterpreted in its correct context.

Although labor laws in Colorado do not make it a right-to-work state, understanding what that phrase means is just as important as knowing the answer to that question.

Is Colorado a State That Recognizes the Right-To-Work Law?

Colorado does not have a right-to-work policy.

According to Find Law, Colorado has a hybrid policy called the Labor Peace Act, which states that

“employees at most workplaces are not required to join a union or pay dues, even though they enjoy the same compensation and benefits as union members.” “Workers who do not join a union, on the other hand, are not covered by union protections (such as legal representation in employment disputes).”

Colorado does, however, allow employees to circumvent the right-to-work rules by forming “all-union” businesses.

Employees must vote 75 percent in favor of this, which is a process overseen by the Colorado Department of Labor.

What Is Right to Work?

Simply put, the right-to-work law, also known as the Workplace Freedom or Workplace Choice law, gives employees the option of joining or not joining a union at their place of employment. Similarly, it makes it optional for workers currently employed in unionized companies to pay union dues and other membership costs, which are required for union representation (whether or not they are members of the union).

Meanwhile, a growing number of states have approved “right to work” legislation that prohibits labor contracts that compel (or forbid) employees to join (or refrain from joining) labor unions as a condition of employment.

What Is At-Will Employment?

With the exception of Montana, every state is an at-will employer.

Basically, unless the employee has a contract or a union agreement that indicates otherwise, under the at-will employment policy, either the employer or the employee can terminate employment at any time for any reason (unless it’s illegal and proven wrongful termination, which is difficult to prove).

What Does It Mean to Have the “Right to Work” Under Labor and Employment Law?

Under labor law, “right to work” refers to states that prevent employers and unions representing employees from requiring employees to join the union as a condition of employment.

The term is not a legal term; rather, it is a propaganda term used by anti-union activists in the same way that pro-choice and pro-life campaigners use positive messaging to promote their different abortion stances. Nonetheless, the right to work is as well-established in labor law vocabulary as it is to have a specific meaning.

Employees in the bargaining unit must either be union members or pay a partial dues payment to the union for representation without membership, according to most union security agreements.

For the most part, union security agreement proponents realized that demanding union membership would enhance the union’s financial and human backing. It would also promote greater labor peace between workers and bosses by preventing (sometimes violent) conflicts over whether or not to keep the company unionized.

Opponents knew that if unions were unable to assure that all workers in a bargaining unit financially or personally backed the union, they would have fewer resources to agitate in other workplaces. It would exacerbate the problem of free riders and diminish voluntary membership.

Is There a Right to Work Law in Colorado?

Despite efforts to pass one, Colorado does not have a right-to-work law that is comparable to those in other states (a ballot initiative failed in 2012).

The state, on the other hand, employs a hybrid policy under the Labor Peace Act. Employees at most businesses are not forced to join a union or pay dues under this act, although receiving the same pay and benefits as union members.

Workers who do not join a union, on the other hand, are not covered by union protections (including legal representation in employment disputes).

However, Colorado permits workers to bypass right-to-work rules by forming an “all-union” workplace. Employees must vote 75 percent in favor of unionization, a process monitored by the Colorado Department of Labor.

Can You Be Dismissed for Any Reason in Colorado?

Colorado is an at-will state, which means you can be dismissed at any time for any legitimate cause.

It’s not always easy to prove wrongful termination, but your employer can only fire you on lawful grounds.

What Are the Most Important Labor Laws in Colorado?

There are three key labor laws in Colorado that you should be aware of.

#1. Breaks and Meals

When employees work more than five hours in a row, Colorado labor regulations compel employers in the retail and service industries (i.e. food and beverage, commercial support services, or health and medical industries) to provide them with a 30-minute meal break. They must relieve their employees of all responsibilities for the duration of this time.

However, despite the fact that the period is unpaid, some firms prefer to pay employees during this time.

#2. Minimum Wage

Colorado’s minimum wage is $11.10, which went into effect in January 2019.

According to the Colorado Department of Labor,

“the Division of Labor Standards and Statistics has enacted Colorado Minimum Wage Order Number 35 effective January 1, 2019 through December 31, 2019, to reflect the state minimum wage of $11.10 per hour.”

“The maximum amount of tip income that can be utilized to offset the minimum wage of tipped employees is $3.02 per hour… With the approval of Amendment 70, Colorado’s minimum wage raised to $9.30 per hour on January 1, 2017, and will continue to rise by $0.90 each January 1 until it hits $12 per hour in January 2020. Following that, it will be modified annually for cost of living increases as calculated by the Colorado Consumer Price Index. Employees who receive the state or federal minimum wage must be paid this minimal pay.”

#3. Take Vacations

Employers in Colorado are not required to provide paid or unpaid vacation time.

According to the Colorado Department of Labor,

“an employer may adopt a vacation policy in writing or by custom and practice.” “Employees must be informed about the company’s policies. Until and unless the policy is amended, employers and employees must adhere to it. Employers should consult with legal advice when developing their vacation policy, according to the Division.”

History of Right-to-Work Laws

Early labor legislation in the United States allowed employers and unions to bargain over these security agreements, but anti-union lobbyists fought for laws prohibiting them in the early twentieth century.

The National Labor Relations Act of 1935 (NLRA, often known as the Wagner Act) was passed during the New Deal and authorized union security agreements. Employers were allowed to enter into four types of agreements under the NLRA:

#1. Closed Shop:

Employees must be members of the union as a condition of employment in a closed shop. If an employee fails to maintain membership (for example, by not paying dues), the employer is required to fire them.

#2. Union Shop:

Similar to a closed shop, except the employer may hire non-union employees as long as they agree to become union members within a certain time frame.

#3. Agency Shop:

Employees do not have to be union members to work in an agency shop, but non-members must pay agency fees, which are a portion of their dues, to support the expense of representing non-members in the bargaining unit. For the purposes of the bargained agreement, the union represents both union members and non-members in the bargained unit.

#4. Open Shop:

Employees are not required to be members of a union, and employers cannot dismiss employees for choosing to join or not join a union.

The Labor-Management Relations Act, which severely curtailed these agreements, was passed over President Truman’s veto in 1947 by anti-union activists. The LMRA outright prohibits closed stores. It changed the National Labor Relations Act to allow union and agency shops, subject to state laws that may prohibit one or both.

Meanwhile, state laws prohibiting the establishment of union or agency shops are known as right-to-work legislation.

Right-to-work legislation is now in place in twenty-eight states (but not Colorado).

What Is the Difference Between Right to Work and At-Will Employment in the State of Colorado?

Under labor and employment law, right to work and at-will employment are two distinct concerns. They are frequently misunderstood, partly because they sound identical, yet they have very different meanings.

Right-to-work laws forbid employers and unions from agreeing on how to organize their workplace, as we’ve already explained.

At-will employment, on the other hand, is a type of employment relationship in which both the employee and the employer agree to continue working together. Employment can be terminated by either the employer or the employee for any reason not prohibited by law (such as unlawful forms of employment discrimination).

In a right-to-work state (such as Texas), you can be an at-will employee, just as in a state that enables union shops or agency shops, you can be an at-will employee. But unless hired under a collective bargaining agreement or an individual employment contract, employees in Colorado are by default at-will employees.

However, when an employee works under a collective bargaining agreement, the concerns about the right to work and at-will employment collide. The employment relationship is no longer at-will when an employee works under a collective bargaining agreement (CBA). It’s a legally binding contract controlled by the CBA and labor laws.

Furthermore, conditions and procedures for disciplining and discharging an employee are usually included in a CBA. Employees may also be required to give notice or agree not to work for competitors for a certain amount of time.

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At least from the employer’s perspective, the criterion for termination is a just cause standard rather than an at-will standard.

An employer can only fire an employee in accordance with the CBA, and the employee must be given the opportunity to be heard and object to the termination. For this aim, a CBA will frequently establish an arbitration or other hearing system. An employee cannot be fired without “industrial due process” or for any other cause.

But because Colorado is not a right-to-work state, an employee can be hired into a collective bargaining agreement straight away and not be subject to at-will employment. Regardless of the state’s union shop regulations, if the person is not part of a negotiated unit, he or she is an at-will employee (or has an individual employment contract).

Why Should Employees in Colorado Be Concerned About the Right to Work or At-Will Employment?

Employees in Colorado may be concerned about the state’s unionization rules for a variety of reasons. Two apparent reasons: workers seeking employment in a union shop or workers not employed in a union shop who are considering unionization and what requirements they would like the union to place on employment. Colorado’s state labor law has special functions for unionization that must be examined before a campaign is launched.

Another key cause is when an employee’s employment is ended. Why an employer may lawfully fire an employee and when that employee may have a wrongful termination claim is a source of much misunderstanding regarding the right to work and at-will employment.

When an employer breaches a state or federal employment law barring termination for the employer’s specific reason, an at-will employee can file wrongful termination claims. (Unemployment benefits, on the other hand, may adopt a broader approach.)

On the other hand, employees covered by an employment contract or collective bargaining agreement may have contractual remedies if their employer terminates them in a way that violates the agreement’s procedural requirements.