The Introduction of a Landmark Test for Actual Discharge Claims in Colorado

Tuesday, 9 July 2024, 21:09

A recent ruling in Colorado's Potts v. Gaia Children case established a groundbreaking test to assess actual discharge claims, requiring employers to meticulously record termination details and use discretion in digital communications with employees. The decision emphasizes the importance of clear documentation and careful interaction in employment terminations, as highlighted by Michael Laszlo of Clark Hill.

New 'Actual Discharge' Test

In a significant development, a Colorado court introduced a test for evaluating actual discharge claims for the first time.

Employer Obligations

  • Documentation: Employers must diligently document termination circumstances to comply with the new test.
  • Communication: Caution is advised in all electronic communication, especially text messages with terminated employees.

Ensuring compliance with the ruling is crucial for employers navigating termination processes.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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