May 18, 2022 - Non-Compete

Preparing for Colorado’s New Limits on Employee Non-Competes

Continuing the ongoing trend of states placing restrictions on employee non-competes, on May 10, 2022, the Colorado General Assembly passed a bill amending C.R.S. § 8-2-113 (the “Amendment”) and adding significant limitations on employee non-compete agreements. Most notably, the Amendment seeks to:

  • Void all non-compete and customer non-solicit agreements, except for certain limited circumstances, such as non-competes with workers paid over the “highly compensated worker” threshold (currently $101,250 annually) and customer non-solicits with workers earning 60% of that threshold (currently $60,750 annually); 
  • Require certain carve-outs to be included in employee confidentiality agreements;
  • Require mandatory notices be provided to new hires and current employees at specific times and separate and apart from the actual non-compete agreement; and
  • Mandate the use of Colorado law and venue for any workers who reside or work in Colorado at the time of termination.

Read our client alert.