A change to Colorado’s Noncompete Agreements

Effective August 10, 2022, Colorado will ban non-compete clauses for workers earning less than $101,250 annually (adjusted annually by the Colorado Department of Labor). The prohibition also applies to customer non-solicits, except for employees earning at least 60% of the highly compensated threshold—approximately $60,750 in 2022.

Restrictive covenants must be provided to candidates before accepting employment and to current employees at least 14 days before the covenant takes effect. Notices must include: (1) a copy of the non-compete, (2) identification of the agreement by name with a statement that it contains a non-compete, and (3) directions to the specific sections or paragraphs containing the non-compete.

Businesses requiring non-competes or non-solicits should consult an employment law attorney to ensure compliance and enforceability.