Colorado Revised Statutes

Colo. Rev. Stat. § 24-50-124 (2026)

Reduction of employees - definition

✓ current as of July 2026
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(1) (a) When certified employees who, as of January 1, 2013, are within five years from being eligible for full retirement pursuant to section 24-51-602 (1)(a) are separated from state service, they shall be separated or demoted according to procedures established by rule. Such procedures shall require that consideration be given to performance evaluations of the employees and seniority within the total state service. Such employees shall have retention rights throughout the principal department in which they are employed unless the head of the department requests, and the board approves, in advance, limitation of retention rights to major divisions, institutions, or colleges within the principal department.

(b) The state personnel director shall establish procedures, by rule, for the separation or demotion of any certified employees not covered by paragraph (a) of this subsection (1) from state service due to lack of work, lack of funds, or reorganization. Such procedures shall require that consideration be given to performance evaluations of an employee and seniority within the total state service.

(c) The appointing authorities from all departments shall consider placing a certified employee who has been identified pursuant to the procedures established pursuant to paragraph (b) of this subsection (1) as a person to be separated from state service into a funded, vacant position for which the employee is qualified. The state personnel director shall establish by rule procedures for such placements.

(d) (I) The state personnel director shall establish by rule a layoff plan that may be used by a department to provide postemployment compensation or other benefits for certified employees separated from state service. The plan may include, but is not limited to, a hiring preference, payment towards the continuation of health benefits for a specified time after separation, tuition or educational training vouchers, severance pay, or placement on a departmental reemployment list.

(II) The postemployment compensation or other benefits may be offered through a separation agreement.

(III) In no case shall the total value of the postemployment compensation and other benefits authorized pursuant to this paragraph (d) exceed an amount equal to one week of an employee's salary for every year of his or her service, up to a maximum of eighteen weeks of the employee's salary.

(IV) A certified employee is not entitled to receive any postemployment compensation or other benefits pursuant to this paragraph (d).

(2) A certified employee who is separated from state service shall be placed on a departmental reemployment list for a period of not less than one year, unless the employee waives the right to be so placed as part of a separation agreement.

(3) As used in this section, "separated from state service" means separated from state service due to lack of work, lack of funds, or reorganization. Source: L. 72: R&RE, p. 173, § 1. C.R.S. 1963: § 26-1-24. L. 81: Entire section amended, p. 1202, § 20, effective July 1. L. 84: (1) amended, p. 711, § 9, effective July 1. L. 2012: Entire section amended, (HB 12-1321), ch. 260, p. 1351, § 11, effective September 1.

Cross references: In 2012, this section was amended by the "Modernization of the State Personnel System Act". For the short title and the legislative declaration, see sections 1 and 2 of chapter 260, Session Laws of Colorado 2012.

Notes of Decisions
Cited in 10 cases, 1984–2007 · leading case: Colorado Ass'n of Pub. Employees v. Lamm, 677 P.2d 1350 (Colo. 1984).
Colorado Ass'n of Pub. Employees v. Lamm, 677 P.2d 1350 (Colo. 1984). · cites it 10× “XII, §§ 14(3) and (4), which vest rule-making authority exclusively in the State Personnel Board (Board); (2) Section 24-50-124(1) of S.B. 308, modifying criteria and procedures to be employed in separating certain certified employees from state service, violates the veterans’…”
Colorado Ass'n of Pub. Employees v. Bd. of Regents, 804 P.2d 138 (Colo. 1990). · cites it 4× “" Similarly, C.R.S. § 24-50-124(1), regarding the reduction of employees under the State Personnel System, contemplates that certified employees may be "separated from State service due *159 to lack of work, lack of funds, or reorganization.”
Renteria v. Colorado State Dep't of Pers., 811 P.2d 797 (Colo. 1991). · cites it 4× “” Section 24-50-124(1) similarly states: When certified employees are separated from state service due to lack of work, lack of funds, or reorganization, they shall be separated or demoted according to procedures established by rule.”
Colorado Ass'n of Pub. Employees v. Dep't of Highways, 809 P.2d 988 (Colo. 1991). · cites it 3× “The DOH, however, contends it does have legislative authority under section 24-50-124, 10B C.R.S. (1988), to support the termination of the affected employees.”
Rice v. Auraria Higher Educ. Ctr., 131 P.3d 1096 (Colo. Ct. App. 2005). · cites it 8× “2004, when certified employees are separated from state service because of lack of work, lack of funds, or reorganization, they shall be separated according to procedures established by Personnel Board rules. Such procedures must require that consideration be given to…”
Teigen v. Renfrow, 511 F.3d 1072 (10th Cir. 2007). “See Colo.Rev.Stat. § 24-50-124. According to Plaintiffs’ allegations, both were informed in May 2003 that their positions were being abolished as part of a statewide reduction in force.”
Hughes v. Dep't of Higher Educ., 934 P.2d 891 (Colo. Ct. App. 1997). · cites it 8× “Section 24-50-124, C.R.S. (1988 Repl.Vol.”
Bardsley v. Colorado Dep't of Pub. Saf.-Div. of Disaster Emergency Servs., 870 P.2d 641 (Colo. Ct. App. 1994). · cites it 3× “It further provided that no present DODES employees would be transferred to such new jobs, either in DOLA or elsewhere; that such employees, under § 24-50-124, C.R.S. (1988 Repl.Vol. 10B), would have reemployment rights only within DPS and could not exercise such rights in DOLA…”
Velasquez v. Dep't of Higher Educ., 93 P.3d 540 (Colo. Ct. App. 2003). · cites it 4× “801 (2001)(defining layoff based on events that do not involve fault of the employee). Whether discharge is for job abolishment or misconduct, the immediate impact on the certified employee — job loss — is the same.”
Martinez v. Dep't of Pers. & Admin. Exec. Off., 159 P.3d 631 (Colo. Ct. App. 2006). · cites it 2× “Therefore, we reverse the Board's order and remand with orders to reinstate employee to certified state employment at the Accounting Technician II level including all benefits, seniority, and back pay subject to any disciplinary proceedings, and, if no appropriate vacancy…”
Colo. Rev. Stat. § 24-50-124(1): 5 cases
Colorado Ass'n of Pub. Employees v. Lamm, 677 P.2d 1350 (Colo. 1984). “XII, §§ 14(3) and (4), which vest rule-making authority exclusively in the State Personnel Board (Board); (2) Section 24-50-124(1) of S.B. 308, modifying criteria and procedures to be employed in separating certain certified employees from state service, violates the veterans’…”
Colorado Ass'n of Pub. Employees v. Bd. of Regents, 804 P.2d 138 (Colo. 1990). “" Similarly, C.R.S. § 24-50-124(1), regarding the reduction of employees under the State Personnel System, contemplates that certified employees may be "separated from State service due *159 to lack of work, lack of funds, or reorganization.”
Renteria v. Colorado State Dep't of Pers., 811 P.2d 797 (Colo. 1991). “” Section 24-50-124(1) similarly states: When certified employees are separated from state service due to lack of work, lack of funds, or reorganization, they shall be separated or demoted according to procedures established by rule.”
Rice v. Auraria Higher Educ. Ctr., 131 P.3d 1096 (Colo. Ct. App. 2005). “2004, when certified employees are separated from state service because of lack of work, lack of funds, or reorganization, they shall be separated according to procedures established by Personnel Board rules. Such procedures must require that consideration be given to…”
Velasquez v. Dep't of Higher Educ., 93 P.3d 540 (Colo. Ct. App. 2003). “801 (2001)(defining layoff based on events that do not involve fault of the employee). Whether discharge is for job abolishment or misconduct, the immediate impact on the certified employee — job loss — is the same.”
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