Non-Compete Agreements in Colorado
How Colorado law treats non-compete agreements, with the statute or official source.
Short answer: Generally void. A non-compete is allowed only for highly compensated workers (pay at or above a yearly threshold set by the state) and only to protect trade secrets; C.R.S. § 8-2-113 (HB 22-1317)
| Non-compete agreements | Generally void. A non-compete is allowed only for highly compensated workers (pay at or above a yearly threshold set by the state) and only to protect trade secrets; customer non-solicitation agreements are allowed for workers earning at least 60% of that threshold. Separate notice rules apply. Employers that present or try to enforce a void non-compete face a $5,000 penalty per worker, plus damages and attorney's fees. Source: C.R.S. § 8-2-113 (HB 22-1317) |
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Where to get help in Colorado
- Colorado Department of Labor and Employment (CDLE), Division of Labor Standards and Statistics
- File a complaint or claim
More Colorado employment law
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- All Colorado employment law rules
FAQ
Are non-compete agreements enforceable in Colorado?
Generally void. A non-compete is allowed only for highly compensated workers (pay at or above a yearly threshold set by the state) and only to protect trade secrets; customer non-solicitation agreements are allowed for workers earning at least 60% of that threshold. Separate notice rules apply. Employers that present or try to enforce a void non-compete face a $5,000 penalty per worker, plus damages and attorney's fees.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.