HB 22-1317: Restrictive Employment Agreements

• Voids most non-compete covenants that restrict workers' right to employment, with exceptions for business sales, trade secret protection, and physician agreements.

• Permits non-compete agreements only for workers earning at or above the "highly compensated workers" threshold if narrowly tailored to protect trade secrets; allows non-solicitation covenants at 60% of that threshold.

• Requires employers to provide written notice of non-compete terms to prospective workers before job acceptance or to current workers at least 14 days before the agreement's effective date.

• Prohibits employers from entering into, presenting, or enforcing void non-compete agreements; violators face $5,000 penalty per affected worker plus actual damages and attorney fees.

• Establishes that Colorado law governs non-compete enforceability for workers primarily employed or residing in Colorado, and allows workers to seek declaratory judgments of unenforceability.