Managers in Denver city departments will now consider merit-based factors, rather than solely relying on seniority, when deciding layoffs to address a $200 million budget deficit. This change was approved by the Career Service Board on Tuesday, with four out of five members supporting the move after a lengthy four-hour meeting. The decision arrives just weeks before Mayor Mike Johnston’s administration is expected to initiate layoffs of city employees, potentially impacting several offices and agencies significantly.
Mayor Johnston emphasized the importance of the rule change in a news release, stating, “The rule change is an important step toward ensuring our workforce meets the needs of our residents, even during difficult economic times.” Previously, layoff decisions were based solely on employees’ length of service. Now, managers will assess a combination of factors, including performance history, skills, and abilities.
Reactions and Concerns
The decision has sparked protests and backlash among some employees and City Council members. Critics argue that the new policy could damage the city’s reputation as an employer and introduce potential discrimination risks. In a letter to the board, 11 council members expressed their concerns, stating, “This change would create confusion, undermine employee morale and open the door to inequitable treatment and legal risk.”
The vote followed a previous hearing last month that attracted hundreds of viewers both in person and online. During that meeting, Audra Burgos, a Denver city worker for 37 years, voiced her concerns: “We city workers who have fought and fought to keep our jobs and have tenure deserve to leave when we are ready. We earned that.”
Policy Details and Implementation
The new policy comes over a month after Mayor Johnston announced the need for layoffs and furloughs due to a significant budget shortfall expected to total $250 million this year and next. According to Theresa Marchetta, a human resources spokesperson, some agencies could face cuts of up to 20%, impacting both programs and personnel. Personnel costs, which make up the majority of the city’s budget, have increased by 81% from 2012 to 2022.
Under the revised policy, managers are required to weigh length of service at 25% when evaluating employees. They have the discretion to allocate the remaining weight among performance history, ability, and skills, with each factor ranging between 10% and 35%. In cases of a tie, length of service will serve as the tiebreaker.
“These changes are a necessary step to ensure we retain the best people to serve the residents of Denver,” said Kathy Nesbitt, the executive director of the city’s Office of Human Resources.
Broader Implications and Future Steps
Board co-chair Ashley Kilroy was the sole dissenting vote, expressing concerns about the flexibility managers have in deciding which factors to prioritize. “It opens up too much to implicit bias creeping in,” she noted. The board also approved other changes to the layoff policy, such as extending the time frame for automatic reinstatement of laid-off employees if their previous position becomes available—from six months to one year.
“I hope employees don’t see us sort of ignoring what the real human toll is,” Kilroy added. “We know it will be significant.” City employees are set to receive a 30-day notice for layoffs, which could commence as early as August 1.
This development comes as Denver faces broader economic challenges, with personnel costs having surged significantly over the past decade. The city’s decision to incorporate merit-based criteria in layoff decisions reflects a growing trend among municipalities to balance fiscal responsibility with workforce efficiency. As the situation unfolds, the city will need to navigate the complexities of implementing these changes while maintaining employee morale and public trust.
About The Author
