Colorado Noncompete Agreement: What's Included and Enforceability
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Is a Non-Compete Agreement Enforceable in Colorado?
In Colorado, non-compete agreements are generally unenforceable unless they meet one of the few limited exceptions laid out in the new non-compete legislation that went into effect on August 10, 2022.
Although this law provides exceptions to the ban on non-compete agreements, the exceptions are very limited and Colorado laws are very worker friendly.
The new regulations include the following provisions:
- All non-compete agreements are void unless they are entered into with a “highly compensated” worker. The 2022 wage threshold for “highly compensated” is $101,250 annually.
- The employee must be employed for at least two years to enforce a non-compete.
- All non-compete agreements not designed to protect trade secrets are void.
- Non-compete agreements that are more broad than necessary to protect an employer’s interests are void.
- Prospective workers must be provided with the non-compete agreement before they accept the job.
- Current employees must be notified at least 14 days before signing the agreement and provided with a summary of the restrictive terms.
- All non-compete disputes are required to be adjudicated in Colorado courts under Colorado laws.
- Non-compete agreements are prohibited for lawyers and physicians.
Like many other states, Colorado requires non-compete agreements to be reasonable in duration and geographic scope. Courts will review the individual facts of each agreement to determine reasonableness.
Is the New Colorado Non-Compete Law Retroactive?
The new Colorado non-compete laws are not retroactive. This legislation was passed on August 10, 2022, and only applies to non-compete agreements entered into after this date. Any non-compete agreements that were executed before August 10, 2022, are still subject to the previous Colorado laws that governed non-compete agreements.
How Long Does a Colorado Non-Compete Agreement Last?
Colorado laws do not include a limit on the duration of non-compete agreements. Instead, we look at how courts have ruled on non-compete disputes to determine what is generally considered reasonable.
Based on past cases, a duration of one year for a non-compete agreement is usually considered reasonable. It should be noted that contracts with durations of up to five years have also been upheld because the reasonableness of duration will depend on the specific facts surrounding the case.
How Do You Get Around a Non-Compete Agreement in Colorado?
The laws governing non-compete agreements in Colorado favor the worker, not the employer, so there are several ways to get around or beat a non-compete agreement. If an employee can prove that the contract does not fit into one of the narrowly tailored exceptions, then the contract will be enforceable.
One exception requires that non-compete agreements must be designed specifically to protect a trade secret. Colorado statutes consider the following business information as “trade secrets”:
- Scientific or technical information
- Designs, processes, procedures, or formulas
- Confidential business or financial information
- Lists of names and personal information
Furthermore, to be considered a trade secret, the employer must have taken measures to prevent the information from becoming available to other people.
If a non-compete agreement doe does not protect a trade secret, it cannot be enforced.
What Voids a Colorado Non-Compete Agreement?
Any contract that is overly broad or unreasonable will be deemed void in Colorado. Unlike other states which allows courts to modify agreements to make them enforceable (a practice called blue penciling), Colorado does not permit this practice. If any term is unenforceable, the entire contract is determined to be unenforceable.
Additional reasons that a Colorado non-compete may be voided include:
- The employee was not given notice about the contract.
- The contract was not signed by the employee.
- The employee makes less than the wage threshold that allows non-compete agreements.
Frequently Asked Questions
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Mark D.
Partnering with business clients to keep their greatest asset - their employees - from becoming their biggest liability. Mark accomplishes this by working with in-house counsel and human resource professionals of several Fortune 50 companies, as well as many smaller public and privately held profit and not for profit organizations, to provide advice and counsel on the day to day employment and workforce practice issues encountered by those organizations. For over fifteen years Mark has been Board Certified in Labor and Employment Law by the Texas Board of Legal Specialization. He is licensed and practices in both Texas and Colorado and has focused his practice for the last 20 plus years on defending companies in employment and labor related matters. During this time Mark has had extensive experience in handling and responding to a wide range of local, state and federal employment issues that impact the management and operations of businesses in a wide range of industries. Mark's experience includes appearances before state and federal agencies and regulatory boards, litigation in both state and federal courts, defense of class actions and appearances before courts of appeal. While Mark regularly handles matters in litigation, he has a high regard for handling every issue with the best interest of the client’s business. Mark is a published author and regular speaks on labor, employment and workplace practice topics. Whether it be an investigation by the Occupational Safety and Health Administration (OSHA), the Wage & Hour division of the U.S. Department of Labor, or other state agency; an Equal Employment Opportunity Commission (EEOC) or state agency charge claiming a violation of local, state or federal employment or labor laws; or the need for direction on a hiring, termination or business operational issue involving employees, Mark has extensive experience in handling these and many other employment and labor issues.
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Dean F.
Ferraro Law Firm was founded by Dean C. Ferraro. Dean earned his Bachelor's Degree from California State Polytechnic University, Pomona ("Cal Poly Pomona") in 1992 and his J.D. Degree from the University of Mississippi School of Law ("Ole Miss") in 1996. He is licensed to practice law in the State Courts of Colorado, Tennessee, and California. Dean is also admitted to practice before the United States District Courts of Colorado (District of Colorado), California (Central District), and Tennessee (Eastern District). Shortly after earning his law license and working for a private law firm, Dean joined the District Attorney's office, where he worked for five successful years as one of the leading prosecuting attorneys in the State of Tennessee. After seven years of practicing law in Tennessee, Dean moved back to his birth state and practiced law in California from 2003-2015. In 2015, Dean moved with his family to Colorado, practicing law in beautiful Castle Rock, where he is recognized as a highly-effective attorney, well-versed in many areas of law. Dean's career has entailed practicing multiple areas of law, including civil litigation with a large law firm, prosecuting criminal cases as an Assistant District Attorney, In-House Counsel for Safeco Insurance, and as the founding member of an online law group that helped thousands of people get affordable legal services. Pursuing his passion for helping others, Dean now utilizes his legal and entrepreneurial experience to help his clients in their personal and business lives. Dean is also a bestselling author of two legal thrillers, Murder in Santa Barbara and Murder in Vail. He currently is working on his next legal thriller, The Grove Conspiracy, set to be published in 2023.
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Curt Brown has experience advising clients on a variety of franchising, business litigation, transactional, and securities law matters. Mr. Brown's accolades include: - Super Lawyers Rising Star - California Lawyer of the Year by The Daily Journal - Pro Bono Attorney of the Year the USC Public Interest Law Fund Curt started his legal career in the Los Angeles office of the prestigious firm of Irell & Manella LLP, where his practice focused on a wide variety of complex civil litigation matters, including securities litigation, antitrust, trademark, bankruptcy, and class action defense. Mr. Brown also has experience advising mergers and acquisitions and international companies concerning cyber liability and class action defense. He is admitted in California, Florida, D.C., Washington, Illinois, Colorado, and Michigan.
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Benjamin V.
My practice involves counseling businesses and individuals on a variety of contracts, such as business formation, technology/IP, real estate, leases, and even domestic relations agreements. Much of my practice is dedicated to litigation. As such, I approach contract and transactional work from a litigation perspective by advising clients of the risks involved in failing to develop proper contracts. It takes more than knowledge of the law to be a good lawyer. A good lawyer is honest and forthcoming with clients and has a counseling ethos. And, to me, a good lawyer stands in the shoes of the client when considering how to best serve that client. Whether my client is a business or an individual, I am passionate about helping my clients understand their rights, responsibilities, risks, and possibilities.
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Kathryn K.
I help individuals, entrepreneurs, and businesses draft, review, and negotiate contracts that protect their interests, clarify expectations, and support their goals. Whether you need a new agreement, help understanding a contract someone sent you, or stronger legal terms for your website or online business, I bring broad commercial legal experience and a practical, business-focused approach to your project. As an attorney with experience spanning private practice, government, and in-house counsel roles, I have worked on contracts ranging from straightforward business agreements to complex, high-value transactions involving major multinational companies. I currently serve as in-house counsel for a growing technology company, where I lead commercial contract negotiations and advise on privacy, data protection, intellectual property, and risk management. I also spent seven years providing fractional legal counsel to businesses, helping them navigate day-to-day commercial transactions and develop agreements and contract templates tailored to their needs. I can help with a wide range of contract needs, including: Contract drafting and review: Identifying potential risks, clarifying obligations, and ensuring agreements reflect your business objectives. Contract negotiation: Reviewing proposed terms, identifying unfavorable provisions, and helping you negotiate more balanced agreements. Business and service agreements: Consulting and independent contractor agreements, professional services agreements, client and vendor contracts, and general business agreements. Confidentiality and intellectual property: NDAs, licensing agreements, content distribution agreements, and contracts addressing ownership and permitted use of creative work or other intellectual property. Partnerships and business relationships: Collaboration agreements, teaming arrangements, distribution agreements, and other agreements that define how parties will work together. Website and online business terms: Terms of Service, Terms and Conditions, website terms, and privacy policies tailored to your business model, online activities, and applicable legal requirements. Technology and SaaS agreements: Software and subscription agreements, technology licensing, data protection provisions, and vendor agreements. My experience includes working on both sides of commercial transactions, so I understand the importance of protecting your interests while keeping agreements practical and workable. I have negotiated agreements across a broad range of industries, developed contract templates and playbooks, and helped businesses address complex legal issues without losing sight of their commercial priorities. My approach is straightforward: understand what you need, identify the issues that matter, and deliver clear, thoughtful legal work tailored to your situation. I aim to make the legal process easier to navigate by explaining important provisions in plain English, flagging meaningful risks, and focusing on practical solutions rather than unnecessary complexity. Whether you are starting a business, engaging a contractor, entering a new partnership, reviewing an agreement before signing, or establishing the legal terms for an online business, I bring the experience and perspective to help you move forward with greater confidence.
Alex F.
I am a small business attorney licensed to practice in Colorado and Texas. I focus on commercial lending and outside general counsel services.
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Browse Lawyers NowLawyer Reviews for Colorado Noncompete Agreement Projects
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"Valerie was professional, quick, and precise. Will reach out to her for any future matters. Thank you."
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It was a pleasure serving you! Looking forward to helping you in the future.
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Employee Rights
Noncompete Agreement
Florida
Noncompete agreement geographic scope?
I recently left my job of five years and have been offered a new position with a competitor. The new employer has asked me to sign a noncompete agreement. I am concerned about the geographic scope of the agreement and need to understand what areas it would cover, and if it would prevent me from taking a position with a competitor in another state or country.
Daniel D.
The Courts use a reasonableness standard determine if a non-compete is reasonable in time and geographic scope. It would be necessary to see the non-compete to tell you what it says, the areas it would cover and if it would prevent you from taking another position.
Employment
Noncompete Agreement
Connecticut
Noncompete agreement and promotions?
I recently accepted a promotion within my company and was asked to sign a noncompete agreement. I am concerned that if I accept the promotion and then leave the company, that I will not be able to take a similar position with another company. I am also worried that if I don't accept the promotion, I may be at risk of being terminated. I need to know what my rights are and what the implications are of signing the noncompete agreement.
Thomas L.
It depends on the terms of the non-compete and the size of your employer. Without seeing the agreement and knowing the size of your employer, I can't offer more advice.
Employer
Noncompete Agreement
Connecticut
Can a noncompete agreement be waived?
I am a small business owner in the retail industry and I am looking to hire a new employee. The employee has a noncompete agreement with their previous employer that I am concerned about. I want to know if it's possible for the agreement to be waived so that I can be sure I'm making the right decision in hiring this employee.
Thomas L.
Yes, the parties to contracts can always agree to amendments and waivers. However, the former employer may have no interest in waiving the contract in this particular situation.
Employee Rights
Noncompete Agreement
Georgia
How does a noncompete agreement work?
I am an employee at a small business and I have recently been asked to sign a noncompete agreement. I am not sure how these agreements work and what rights I have as an employee. I am also concerned about the restrictions that could be placed on me if I sign the agreement. I want to make sure I understand the implications of signing the agreement before I do so.
Nancy B.
In its simplest terms, a noncompete agreement in an employment context is an agreement that says you will not compete with your former employer if you ever stop working for them. It typically forbids things like: + Working for a competitor + Starting a company that sells the same services/products as your employer + Recruiting employees from your current employer after you have left that employment. One thought is that this could be requested shortly before letting an employee go just to protect the company from competition but I hope that is not the case here as it seems like an unfair use of the noncompete agreement ability in Georgia. The issues are usually the geographical scope (for example within 15 miles of Dalton, Georgia), the time period (one or two years is usually sufficient and courts do not favor long noncompete agreements), and the consideration (such as a new job - which is not applicable in your case, or more compensation). Regards, Nancy A. Burnett
Employment
Noncompete Agreement
Colorado
Can I get out of my noncompete agreement?
I am looking at my options.
Donya G.
You may be able to be released from a non compete. You would have to review the language in the non compete to see the expiration. DISCLAIMER The answers to these questions do not constitute legal advice and does not create an attorney-client relationship with the attorney and anyone who reviews these responses.
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