Colorado’s labor battles intensify with “just cause” ballot initiative

Colorado’s largest unions filed Initiative 43 on Friday, requiring private-sector employers to prove “just cause” before firing workers — adding a new dimension to the state’s already contentious labor debate.

What’s happening: The AFL-CIO of Colorado, SEIU Local 105, and United Food & Commercial Workers Local 7 want to end at-will employment for companies with eight or more employees.

• Employers would need to provide written justification within seven days of terminating any worker, documenting one of seven acceptable reasons including substandard performance, material neglect, policy violations, or economic circumstances
• Employees could sue for reinstatement, back pay, front pay, and attorneys’ fees if they believe their dismissal lacked proper cause, creating significant new litigation exposure for businesses
• The initiative would apply only to private-sector workers with at least six months of service, explicitly exempting government employees except those at University of Colorado Hospital and Denver Health

The big picture: This move comes amid heated debate over Senate Bill 5, which aims to eliminate Colorado’s unique two-tier unionization voting system.

• Since 1943, Colorado’s Labor Peace Act has required two union elections:
  • First: A simple majority vote (50%+1) for union representation, matching federal NLRB requirements
  • Second: A 75% supermajority for mandatory dues collection from all employees, a unique protection making Colorado a “modified right-to-work” state
• SB 5 would abolish the second vote, aligning Colorado with “forced union” states where a single majority vote can mandate dues for all employees, regardless of their individual preferences

By the numbers:

• 70% of Colorado voters oppose removing the second vote, including 87% of Republicans, 72% of independents, and even 50% of Democrats according to a WPA Intelligence poll
• Business groups warn changing the Labor Peace Act could result in 152,000 fewer jobs by 2040, with business growth potentially dropping to half of historical rates
• 50% of economic development deals consider right-to-work status a critical factor in site selection decisions
• Colorado workers already earn 22% above the national average wage, with just 6.9% belonging to unions — the lowest among forced-union states

Between the lines: The Independence Institute has already filed a competing 2026 ballot measure to make Colorado a right-to-work state if SB 5 passes.

• Institute President Jon Caldara: “This is not a fight I really want to have. This is a huge, expensive fight… But if the Legislature messes with the Labor Peace Act, we will go to the mattresses”
• AFL-CIO Executive Director Dennis Dougherty defends the just-cause initiative: “People believe that they have just-cause rights. They’re shocked that they don’t”
• Montana is currently the only state with similar just-cause provisions, and its economic development leaders have cited the law as hurting business attraction despite provisions designed to make it workable

Why it matters: Colorado’s 2026 ballot could become a referendum on labor relations that reshapes the state’s economic landscape for decades.

What to watch: Governor Jared Polis has threatened to veto SB 5 unless business and labor leaders reach a compromise. His decision could determine whether voters face multiple labor initiatives simultaneously next year.