Colorado non-compete law

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Short answer: Colorado heavily restricts non-competes under C.R.S. § 8-2-113, amended in 2022. Non-competes are only enforceable against highly compensated workers (earning above $124,500 for 2024, indexed annually), only to protect bona fide trade secrets, and only with written notice before acceptance. Customer non-solicits have lower thresholds. Agreements that fail any of these requirements are void.

The 2022 reforms

Colorado's restrictive covenant law was significantly tightened by HB 22-1317, effective August 10, 2022. Before the reforms, Colorado's general approach was that non-competes were void with several specific exceptions. After the reforms, the statute imposes additional procedural and substantive requirements on the exceptions that remain.

The reformed statute, C.R.S. § 8-2-113, generally voids non-competes except in narrow categories:

Sale of a business
Protection of trade secrets (subject to compensation thresholds)
Recovery of education or training expenses
Statutorily defined "highly compensated worker" status with proper notice

For ordinary employment, the trade secret protection is the primary basis for enforcement, and even that path is heavily constrained.

Salary threshold

For non-competes to be enforceable under the trade secret exception, the employee must qualify as a "highly compensated worker" under the statute. For 2024, the threshold is $124,500 in annualized earnings. The threshold is adjusted annually based on Colorado's Average Hourly Earnings index.

For customer non-solicits, the threshold is 60% of the highly compensated worker amount, which is $74,700 for 2024.

Employees earning below the relevant threshold cannot be bound by a non-compete or non-solicit regardless of other factors.

Trade secret tie

Even for highly compensated workers, the non-compete must be tied to the protection of a bona fide trade secret. Generic competitive concern, customer relationships, or general industry knowledge are not sufficient.

The statute references the Colorado Uniform Trade Secrets Act for the definition of trade secret: information that derives independent economic value from not being generally known and that is subject to reasonable efforts to maintain secrecy.

If the employer cannot demonstrate a specific trade secret at risk, the non-compete is unenforceable even if all other requirements are met. This is one of the most restrictive trade-secret-tie requirements in the country.

Notice requirements

The employer must provide written notice of the non-compete provision and its specific terms before the employee accepts the offer of employment or, for mid-employment additions, before the agreement takes effect.

The notice must be separate from the employment agreement itself and must clearly identify the non-compete as a covenant not to compete. Burying the provision in a broader contract without separate notice is insufficient.

Failure to provide proper notice voids the non-compete.

Customer non-solicits

Customer non-solicits in Colorado have their own framework. They're permitted under the trade secret exception but with the lower salary threshold ($74,700 for 2024). They must still be tied to protection of trade secrets or trade secret-protected customer relationships.

The act distinguishes between two types of customer relationship protections:

Customer non-solicits where the customer relationship itself is the trade secret
Restrictions designed to prevent the use of trade secret information in soliciting customers

The first type requires showing that the customer information meets the trade secret definition (which is a high bar for general customer lists). The second type is more typically enforced because it ties to actual trade secret material.

What to do next

If you're a Colorado employee under a non-compete, the diagnostic is: (1) Are you above the salary threshold? (2) Did you get proper written notice? (3) Is there a specific identified trade secret? Without all three, the non-compete is unenforceable.

If you want a delivered analysis of your specific agreement against Colorado law, we deliver one in 24 hours for $199. See Non-Compete Review.

Sources

C.R.S. § 8-2-113 (Colorado non-compete statute, as amended by HB 22-1317)
C.R.S. § 7-74-101 et seq. (Colorado Uniform Trade Secrets Act)
2024 thresholds published by Colorado Department of Labor and Employment

Get your contract reviewed

If you want a delivered review of your specific document with cited authority and counter language, see https://trycounteroffer.com/non-compete.

Last updated: Sun May 31 2026 00:00:00 GMT+0000 (Coordinated Universal Time)

Counteroffer is a contract analysis service, not a law firm. This page is informational, not legal advice.