Colorado Non-Compete Agreement
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Colorado Legal Requirements
Key CO statutes and obligations that apply to your non-compete agreement.
Requirements
- Only enforceable for workers earning at least $123,750/year (2024 threshold, adjusted annually)
- Must be in a separate, signed document — cannot be buried in an employment contract
- Employer must provide the agreement 14 days before the start of employment or change of terms
- Must be narrowly tailored to protect trade secrets or confidential information
- Must include a copy of SB 21-271 disclosure or equivalent notice
- Geographic scope and duration must be reasonable relative to the employee's role
Restrictions & Limits
- Non-competes for workers below the earnings threshold are void and unenforceable — no reformation allowed
- Non-solicitation agreements have a separate lower threshold ($60,750/year) and 12-month maximum
- Employers who violate SB 21-271 face penalties including attorney's fees and statutory damages
Official Statute References
Primary Colorado statutes governing this document type.
Colorado Non-Compete Agreement FAQ
Common questions about non-compete agreements under Colorado law.
What changed about Colorado non-competes in 2022?
SB 21-271 (effective August 10, 2022) dramatically restricted non-competes in Colorado. They are now only enforceable for workers earning at least $123,750/year (2024), must be in a separate signed document, and must be narrowly tailored. Non-competes for lower-wage workers are void.
What is the earnings threshold for Colorado non-competes?
The threshold is $123,750/year as of 2024, adjusted annually for inflation. Workers earning below this amount cannot be bound by non-compete agreements, period — courts will not reform the agreement. Non-solicitation agreements have a lower threshold of $60,750/year.
Can Colorado courts modify an overly broad non-compete?
For qualifying high-earner non-competes, Colorado courts can still apply equitable principles to reform overly broad agreements. However, for workers below the earnings threshold, the agreement is void outright — courts have no authority to modify it.
How much notice must a Colorado employer give before signing a non-compete?
Under SB 21-271, employers must provide the non-compete agreement at least 14 days before the start of employment. For existing employees, 14 days' advance notice is also required before the new terms take effect. Last-minute signing is not enforceable.
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Non-Compete Agreement by State
Laws vary significantly by state. Find the right form for your location.
Disclaimer: LegalLawDocs.com provides self-help legal documents for informational purposes only. The documents and information on this site do not constitute legal advice and are not a substitute for consultation with a licensed attorney. Laws vary by state and change frequently — review your document with a qualified professional before relying on it.