Non-Compete Laws in Colorado
Restricted by income threshold
Colorado restricts non-compete agreements based on income. Workers earning below $130,014 per year (2026 threshold, adjusted annually) cannot be bound by non-competes. Physicians, physician assistants, dentists, and registered nurses are also protected regardless of income. Non-competes for higher earners must still protect legitimate business interests.
Key details
| Enforceability | Restricted by income threshold |
|---|---|
| Income threshold | 130014 — Workers earning below $130,014 annually (2026, adjusted annually for inflation) are protected. The threshold increases each year. |
| Banned industries | Physicians, physician assistants, dentists, and registered nurses (effective August 2025) are protected regardless of income. |
| Blue pencil doctrine | No |
| Key statute | Colo. Rev. Stat. §8-2-113 |
Recent changes
August 2025 amendments expanded protections to physician assistants, dentists, and registered nurses.
What this means for you
If you earn below the threshold, your non-compete is void. If you earn above it, the agreement must still protect a legitimate business interest and be reasonable.
Non-compete laws in Colorado: what you need to know
Colorado takes a threshold-based approach to non-competes. Workers earning below $127,091 per year (2025 threshold, adjusted annually for inflation) cannot be bound by non-compete agreements regardless of their role or industry. For workers earning above the threshold, non-competes are only enforceable if they protect trade secrets and are reasonably necessary to protect the employer's legitimate interest in those secrets.
In August 2025, Colorado expanded its protections significantly for healthcare workers. The new amendments void non-compete and customer non-solicitation agreements for physicians, physician assistants, dentists, and registered nurses regardless of their income level. This change was part of a national trend of states recognizing that non-competes in healthcare can reduce patient access to care, particularly in rural areas where provider shortages are already critical.
Colorado's enforcement penalties are among the strongest in the country. Employers that violate the non-compete restrictions face a penalty of $5,000 per worker or prospective worker, plus injunctive relief, actual damages, and reasonable attorney fees and costs. These penalties apply whether the employer knowingly violated the law or simply failed to update their agreements. The stakes are high enough that most employers take compliance seriously.
One important detail: Colorado requires employers to provide a separate written notice to the worker identifying the non-compete terms at the time the agreement is entered into. Simply burying a non-compete clause in a lengthy employment agreement without specific notice may render the clause unenforceable. Employers must also provide a copy of the non-compete agreement to the worker before it takes effect.
For Colorado workers considering a job change, the practical question is usually straightforward. If you earn below the threshold, your non-compete is void. If you are a healthcare provider in one of the protected categories, your non-compete is void regardless of income. If you earn above the threshold and are not in a protected profession, your non-compete may be enforceable, but only if it genuinely protects trade secrets and is narrowly tailored. Broad agreements that simply prevent you from working in your industry are not enforceable even for high earners.
More Colorado workplace laws
Check other workplace law topics for Colorado:
Frequently asked questions about non-compete laws in Colorado
For 2025, the threshold is $127,091 annually, adjusted each year for inflation. Workers earning below this amount cannot be bound by a non-compete. For customer non-solicitation agreements, the threshold is 60% of this amount. Healthcare providers in specified categories are protected regardless of income.
No. As of August 2025, Colorado law voids non-compete and customer non-solicitation agreements for registered nurses, as well as physicians, physician assistants, and dentists, regardless of income. Your non-compete is not enforceable.
Colorado imposes a penalty of $5,000 per affected worker or prospective worker. You may also be entitled to injunctive relief, actual damages, and reasonable attorney fees and costs. These remedies apply even if the employer was unaware that the agreement violated the law.
No. Colorado does not use the blue pencil doctrine. If a non-compete is found to be overbroad or unenforceable, courts will typically void it rather than rewrite it to make it reasonable. This incentivizes employers to draft narrow agreements from the start.
Yes. Colorado's non-compete restrictions do not apply to agreements that solely protect confidential information or trade secrets, as long as those agreements do not effectively function as non-competes by preventing you from working in your field. A legitimate non-disclosure agreement remains enforceable.