Colorado has some of the strongest worker protections against non-compete and other restrictive covenants in the country.

For decades, Colorado has been hostile to non-compete agreements compared to other states. Since the passage of HB22-1317 in 2022, those protections have become some of the most worker-friendly anywhere. If an employer has asked you to sign a non-compete, a non-solicitation, or a training repayment agreement — whether at hire, during employment, or as part of a severance — there is a strong chance the law is on your side.

Colorado’s General Rule Against Non-Competes

C.R.S. section 8-2-113 makes most restrictive covenants in employment void as a matter of law. There are narrow statutory exceptions, but the burden is on the employer to fit its agreement into one of them. The 2022 amendments raised the bar substantially and added meaningful penalties for employers who require or enforce non-compliant agreements.

When Non-Competes Can Be Enforced

A non-compete can only be enforced in Colorado if all of the following are true:

  • You qualify as a “highly compensated worker.” The salary threshold is set annually by the Colorado Department of Labor and Employment and adjusted for inflation. As of 2025 it is approximately $127,091.
  • The restriction is no broader than necessary to protect a trade secret.
  • The restriction is reasonable in duration and geographic scope.
  • You received separate written notice of the non-compete at least 14 days before signing your offer (or before any material change in your job) in a language you understand, with a separate signature line.

If any one of these requirements is missing, the non-compete is void.

Customer Non-Solicitation Restrictions

A customer non-solicitation agreement is treated similarly but with a lower salary threshold: 60 percent of the highly compensated worker threshold, or about $76,254 in 2025. The same notice and reasonableness requirements apply, and the restriction must still be necessary to protect a trade secret.

Training Repayment Agreement Provisions (TRAPs)

Many employers — especially in healthcare, transportation, sales, and other fields — try to recover the cost of training by requiring employees to repay those costs if they leave within a defined period. These are commonly called training repayment agreement provisions, or TRAPs. Under C.R.S. section 8-2-113, a TRAP is only enforceable if:

  • The employer made full consumer credit disclosures to you before you signed.
  • The training was not on-the-job training. It must be discrete, third-party training such as an external certification or course.
  • The repayment amount equals the employer’s actual cost. Employers cannot mark up the price or recover lost productivity.
  • The amount is forgiven on a prorated basis and is fully forgiven within two years.

If even one of those requirements is missing, the TRAP is unenforceable. If an employer has demanded repayment, threatened to withhold wages, sent your alleged debt to collections, or sued you over training costs that don’t meet these standards, you have strong defenses and may have affirmative claims of your own.

Employee Non-Solicitation and Other Restrictions

Restrictions that prevent you from recruiting or hiring former coworkers are subject to the same general analysis. Broad covenants that prohibit any contact with former coworkers are difficult to enforce. Confidentiality and trade-secret provisions are still permitted, but they cannot function as disguised non-competes.

Health Care Practitioners

Physicians, dentists, advanced practice nurses, certified registered nurse anesthetists, and certain other licensed health care providers are explicitly protected from restrictions on the practice of medicine in Colorado. Patients also have the right to know how to reach a physician who has left a practice.

Penalties for Violation

When an employer requires or attempts to enforce a non-compete or TRAP that violates Colorado law, the employer can be liable for:

  • A statutory penalty of $5,000 per worker affected
  • Actual damages
  • Reasonable attorney’s fees and costs
  • Injunctive relief

What to Do if You Are Asked to Sign — or Sued Over — a Restrictive Covenant

Whether you are being asked to sign a new non-compete, considering a job change that may bring an old restriction into play, or already in a dispute with a former employer, the strict requirements of Colorado law often work in your favor. Document what you were told about the agreement, save every version of the document, and talk to an attorney before you sign or change roles.

Have a non-compete, non-solicitation, or TRAP question? Call us at 303.593.2595 or contact us online for a consultation.

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