Non-compete agreements have long been used by employers to protect business interests by preventing former employees from joining competitors or starting similar businesses. However, Colorado law has taken a strong stance to limit these agreements, especially when they restrict an employee’s ability to earn a living.

Understanding Colorado’s Restrictions on Non-Compete Agreements

In 2022, Colorado significantly reformed its non-compete laws under the Colorado Non-Compete Act. The state now largely prohibits non-compete agreements unless they fall under specific exceptions. These exceptions include agreements with:

• Highly compensated employees, typically those earning above a threshold set by the Colorado Department of Labor and Employment (around $123,750 in 2025).
• Protection of trade secrets, provided the restrictions are reasonable in scope and duration.
• Certain training reimbursement agreements, where the employer covers significant job-related education or certification costs.

All other non-compete agreements are considered void and unenforceable under Colorado law. Employers who attempt to enforce illegal non-competes may face penalties, including damages and attorney’s fees.

Employee Rights Under Colorado Law

Colorado’s updated statute requires transparency—employers must provide written notice of a non-compete before the employee accepts a job offer. If you were asked to sign a non-compete after starting your job or without proper notice, the agreement may not be enforceable.

Additionally, Colorado’s laws now include criminal penalties for employers who knowingly use void non-competes to intimidate workers. Employees should not feel pressured to sign or comply with an unlawful restriction.

Seeking Legal Help for a Non-Compete Dispute

If you’re unsure whether a non-compete agreement you signed is valid—or if you’re being threatened with legal action for violating one—consulting with an attorney is crucial. An experienced employment lawyer can review your agreement, assess its enforceability, and protect your rights.

At Law Office of Ralph G. Torres, we can provide legal assistance to the Denver public regarding non-compete disputes and employment contract concerns. Our team can help you understand your legal options and defend your right to work freely in Colorado.