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Colorado Employment Contract
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Colorado at a glance: Non-Compete Ban: Void except for Highly Compensated Workers (C.R.S. § 8-2-113) · Salary Threshold: Subject to annual state adjustment · Governing Law: Colo. Rev. Stat. § 8-2-113
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Overview
Employment Contracts in Colorado
Colorado strictly bans non-competes for almost all employees under Colorado Revised Statutes Section 8-2-113, with exceptions only for highly compensated workers.
Key Facts
Colorado Employment Contract — Quick Reference
| Requirement | Colorado Rule |
|---|---|
| Non-Compete Ban | Void except for Highly Compensated Workers (C.R.S. § 8-2-113) |
| Salary Threshold | Subject to annual state adjustment |
| Governing Law | Colo. Rev. Stat. § 8-2-113 |
Legal Requirements
Colorado Legal Requirements
- Non-competes are void unless the employee meets the high-compensation threshold.
- Requires specific pre-hire notifications to the employee.
Governing Laws
Colorado Governing Laws
Colo. Rev. Stat. § 8-2-113
Unlawful Restraints on Trade
Bans employee non-compete agreements with narrow exceptions.
Read the full text of these laws at Cornell Law School's Colorado legal resources or your state legislature's official website.
Questions & Answers
Colorado Employment Contract — Frequently Asked Questions
What is the penalty for using an illegal non-compete in Colorado?
Employers can be subject to criminal penalties and statutory damages of $5,000 per worker for violating Section 8-2-113.