Senate Bill 23-053: Restrictions on Nondisclosure Agreements for Government Employees

• Prohibits state, county, city, municipal, and school district governments from requiring employees to sign nondisclosure agreements as a condition of employment, except for narrowly defined circumstances involving privacy, confidential information, trade secrets, security details, and attorney-client privileged communications.

• Deems nondisclosure agreements that violate the restrictions void and unenforceable against government employees, and prohibits employers from taking adverse employment actions against employees who refuse to sign such agreements.

• Establishes that employers who attempt to enforce prohibited nondisclosure provisions are liable for employees' reasonable attorney fees and costs in defending against enforcement actions.

• Requires that any nondisclosure agreements cannot prohibit disclosure of information required to be released under Colorado's Open Records Act, and settlement agreements between employees and government employers must be signed by both parties.

• Takes effect 90 days after final adjournment of the general assembly, subject to referendum petition filed by November 2024; applies to contracts and agreements entered into, renewed, modified, or amended on or after the effective date.