Stacy Jensen No Comments

August 10th, 2022, will mark the ban of non-compete clauses handed to workers in Colorado who make less than $101,250 in 2022, and will be adjusted annually by the Colorado Department of Labor. Colorado’s new limit aligns with the very top of the “low wage” non-compete thresholds set by Washington state and Oregon. The Bill’s prohibitions will also apply to customer non-solicits, but excludes employees earning equal to or greater than 60% of the highly compensated threshold – roughly $60,750 in 2022.

Any restrictive covenants that is given to a candidate prior to accepting a job has to be given to them prior to accepting employment, and given to a current employee at least 14 days prior to the effective date of the covenant. Notices of a restrictive covenant must: (1) be provided with a copy of non-compete; (2) identify the agreement by name and state that the agreement contains a non-compete; and (3) direct the worker to specific sections or paragraphs of the agreement that contain the non-compete.

Any business that requires a non-compete or non-solicit of their candidates or current employees should obtain the counsel or an employment law attorney to ensure these documents are prepared legally and are enforceable.