Are Non-Competes Enforceable in Colorado?

Last updated: 2026-10-07 · Verified against the statutes 2026-10-07

Pay threshold / worker limits

Void unless pay is $130,014+ and it protects trade secrets

Colorado voids non-competes except for highly compensated workers (at least $130,014 in annualized cash compensation in 2026, both when signed and when enforced) where the covenant protects trade secrets and is no broader than reasonably necessary. Customer non-solicits are allowed at 60% of that threshold under the same trade-secret test. Every covenant also needs a separate, signed advance notice. Employers that present or try to enforce a void covenant face a $5,000 penalty per worker plus damages and fees.

Check a non-compete

Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.

Worker

How they're paid

Annual earnings ($)

Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).

Profession

When was it signed?

Employment status

Restriction length (months)

Signed as part of selling a business or ownership stake

Allowed only with strict limits

Colorado allows this non-compete only if it meets the statute's conditions — check each item below.

Colorado: Void unless pay is $130,014+ and it protects trade secrets. C.R.S. 8-2-113
Enter annual earnings — Colorado voids non-competes below $130,014. $130,014 annualized cash compensation for 2026 (CDLE 'highly compensated' threshold in the 2026 PAY CALC Order); must be met when signed and when enforced CDLE 2026 PAY CALC Order, 7 CCR 1103-14

Other Colorado rules to check

Notice and timing: Prospective workers must get notice of the covenant and its terms before accepting the offer; current workers at least 14 days before the covenant (or the raise or change that pays for it) takes effect. The notice must be a separate document, in clear terms, signed by the worker, and must identify the agreement and the covenant's sections. Workers may request a copy once a year.
Non-solicitation clauses: Customer non-solicitation covenants are allowed only for workers earning at least 60% of the threshold ($78,008.40 in 2026) and only to protect trade secrets.
Choice of law and venue: A worker who primarily lived or worked in Colorado at termination cannot be required to litigate enforceability outside Colorado, and Colorado law governs for workers who primarily lived and worked there.
If a court finds it too broad: No settled rule we could confirm.
Penalties: Entering into, presenting or trying to enforce a void covenant: actual damages plus a $5,000 penalty per worker or prospective worker harmed, injunctive relief, costs and attorney's fees (penalty may be reduced for good faith). Using force or threats to stop someone working is a class 2 misdemeanor.

General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.

Colorado non-compete rules

Statute: C.R.S. 8-2-113
Employee pay threshold: $130,014 $130,014 annualized cash compensation for 2026 (CDLE 'highly compensated' threshold in the 2026 PAY CALC Order); must be met when signed and when enforced
Notice and timing: Prospective workers must get notice of the covenant and its terms before accepting the offer; current workers at least 14 days before the covenant (or the raise or change that pays for it) takes effect. The notice must be a separate document, in clear terms, signed by the worker, and must identify the agreement and the covenant's sections. Workers may request a copy once a year.
Non-solicitation: Customer non-solicitation covenants are allowed only for workers earning at least 60% of the threshold ($78,008.40 in 2026) and only to protect trade secrets.
Choice of law / venue: A worker who primarily lived or worked in Colorado at termination cannot be required to litigate enforceability outside Colorado, and Colorado law governs for workers who primarily lived and worked there.
Overbroad covenants: No settled rule we could confirm
Penalties: Entering into, presenting or trying to enforce a void covenant: actual damages plus a $5,000 penalty per worker or prospective worker harmed, injunctive relief, costs and attorney's fees (penalty may be reduced for good faith). Using force or threats to stop someone working is a class 2 misdemeanor.

Profession-specific rules

VoidA covenant restricting a physician's right to practice medicine is void. Since August 6, 2025 the highly-compensated exception no longer applies to covenants restricting the practice of medicine, and departing providers may tell patients where they now practice. (effective August 6, 2025) SB 25-083 (Colorado General Assembly)
VoidSince August 6, 2025 non-competes and customer non-solicits restricting the practice of advanced practice registered nursing or dentistry are excluded from the highly-compensated exception, so they are void at any pay level. (effective August 6, 2025) SB 25-083 (Colorado General Assembly)

Recent and pending changes

February 1, 2026: Final 2026 PAY CALC Order (adopted Dec. 8, 2025; a temporary order applied Jan. 1-31) takes effect: highly compensated threshold $130,014, up from $127,091 in 2025. CDLE 2026 PAY CALC Order
August 6, 2025: SB 25-083 takes effect: health-care provider limits, patient-notice protections, and a duration formula for sale-of-business covenants on minority owners who got equity for services. SB 25-083

Federal law

There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.

Frequently asked questions

Are non-competes enforceable in Colorado?

Void unless pay is $130,014+ and it protects trade secrets. Colorado voids non-competes except for highly compensated workers (at least $130,014 in annualized cash compensation in 2026, both when signed and when enforced) where the covenant protects trade secrets and is no broader than reasonably necessary. Customer non-solicits are allowed at 60% of that threshold under the same trade-secret test. Every covenant also needs a separate, signed advance notice. Employers that present or try to enforce a void covenant face a $5,000 penalty per worker plus damages and fees.

Is there a salary threshold for non-competes in Colorado?

Yes — $130,014. $130,014 annualized cash compensation for 2026 (CDLE 'highly compensated' threshold in the 2026 PAY CALC Order); must be met when signed and when enforced

Did the FTC ban non-competes in Colorado?

No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.

Official Sources

Figures checked against these sources on 2026-10-07

Other states

Same category (Pay threshold / worker limits): District of Columbia, Illinois, Maine, Maryland, Massachusetts, Nevada, New Hampshire, Oregon

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Protect information instead with a confidentiality agreement (NDA generator), or hiring in Colorado? Use the offer letter generator.

Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in Colorado.