Denver passed sweeping changes to the city’s layoff rules, stripping seniority protections and shifting to a hotly debated “merit-based system” as Mayor Mike Johnston prepares to enact mass layoffs.
The move sparked union protests, condemnation from dozens of city workers and promises of legal action.
After meeting for nine hours over two days, the five mayoral appointees on the Career Service Board voted to approve the new rules on a 4-1 vote.
Board co-chair Ashley Kilroy voted against the changes, cautioning they would allow “implicit bias” to inform layoff decisions, opening the city up to legal vulnerabilities.
Her fears were not ill-founded. After the vote, the crowd booed and briefly chanted “shame.” City workers told Denverite they are retaining attorneys in advance of layoff announcements, fearing retaliation for criticizing the changes and Mayor Mike Johnston’s administration.
Four law firms are exploring taking legal action on behalf of workers who will likely be laid off, former mayoral candidate and former city worker Lisa Calderón announced at a union protest ahead of the meeting.
After the vote, Calderón was disheartened by the changes and frustrated the public did not have a second chance to weigh in.
“They didn't want to hear from Denver residents about how their services might be impacted,” she told Denverite. “They didn't want to do a cost-risk analysis about what all of this litigation might mean. They simply wanted to make sure that Mayor Johnston's directive was met and that it was given cover under an independent agency umbrella.”
The mayor defended the change.
"The rule change is an important step toward ensuring our workforce meets the needs of our residents even during difficult economic times," he wrote in a statement. "I appreciate the board’s careful consideration and the many city employees who shared their feedback and helped shape a rule that meets the needs of our employees and our community."
The rule changes include the following:
The board changed the criteria for who the city will lay off first. Instead of relying entirely on seniority, now managers will weigh employees’ performance history, skills, abilities and length of service.
Managers will weigh length of service at 25 percent and the other three criteria at between 10 to 35 percent each.
Kilroy, the sole no vote, argued this new system was “inconsistent.” This sticking point motivated her to vote against the changes.
Kathy Nesbitt, the executive director of the Office of Human Resources, argued the weighted ranges would give managers the “flexibility” they needed to make sound decisions for their departments.
"These changes are a necessary step to ensure we retain the best people to serve the residents of Denver, prioritizing performance history, abilities, skills, and length of service," Nesbitt said in a statement.
Originally, reinstatement rights — what determines how and when an eligible employee could be rehired — were struck from the initial proposal. However, the board and the Office of Human Resources responded to overwhelming criticism and made adjustments. Now, eligible employees who meet certain performance criteria can be reinstated if their jobs reopen within 12 months.
Employees no longer have the right to “bump” or displace other employees instead of facing layoffs.
Workers within 90 days of retirement will have additional layoff protections, allowing them to retire with the city. Employees who don’t meet that 90-day threshold could still be laid off on the cusp of retirement.
The board deliberated for weeks on the changes.
The first half ot the meeting, convened in mid-June, included full-throated public comment, largely from workers who opposed the changes.
More than 100 emails from members of the public, HR professionals and city workers largely criticized the changes in an initial proposal. Eleven members of Denver City Council and Auditor Tim O’Brien also objected to the changes.
Lawyers who work for the City Attorney’s Office cautioned the committee that abandoning seniority protections would lead to subjective layoff criteria and legal risks. The city would likely take on extra costs of litigating court cases that would undermine any savings from cutting staff.
Meanwhile, people who supported the switch to a merit-based system said it would ensure Denver is employing the best employees, not just those who have had their jobs the longest.
After receiving feedback, the Career Service Board asked the Office of Human Resources to go back to the table and incorporate suggestions members heard from the community. The group met again on Tuesday to review, debate and ultimately pass the changes.
The city argues the changes to layoff rules will allow the city to “do more with less” after years of overspending that left the city in a $250 million deficit across 2025 and 2026.
Layoffs have to be enacted before the end of 2025, according to the Johnston administration. Otherwise, the city will not be able to fill the budget hole.
What’s next?
Next week, the Office of Human Resources will begin training managers on the new layoff rules.
Managers will be tasked with figuring out which groups of their employees will go. They will prioritize department goals and Johnston’s priorities as they make their decisions.
Layoff announcements are expected to be rolled out after Aug. 1 and will occur in waves as the city attempts to fill the massive budget deficit.
Employees will receive a 30-day notice.
Calderón is considering organizing a hotline for laid-off workers where they can learn about their rights and connect with employment and civil rights attorneys.
City workers, already furloughed, are in a state of fear as the threat of layoffs looms. And the staff at the Office of Human Resources has the unenviable task of overseeing layoffs, even as they face the possibility of losing their own jobs.
