Every year the threshold amount that workers must be paid in annual total compensation before being legally subject to a non-compete and/or non-solicitation of customers agreement increases. In 2025, the threshold amount increases to $127,091 to be subject to a non-compete agreement and $76,254 to be subject to a non-solicitation of customer agreement. If a person earns less than the above limits, and the agreement was entered into on or after August 10, 2022, and the non-compete and/or non-solicitation agreement in question does not concern the sale of a business, a physician or the recoupment of expenses incurred in educating and/or training a worker, it is illegal for an employer to require a worker who primarily works or resides in Colorado to sign such an agreement.
It has long been established by Colorado courts that Colorado will enforce restrictive covenants so long as they are limited in geographic scope and duration to protect the employer’s legitimate interests. Trans–Am. Collections, Inc. v. Cont’l Account Servicing House, Inc., 342 F. Supp. 1303, 1305 (D. Utah 1972) (applying Colorado law). Under such case law, it was largely understood that depending on the factual circumstances involved, an unlimited geographic scope could potentially be determined to be necessary to protect the employer’s legitimate interests. After all, whether a geographic scope and duration in a non-solicitation agreement is reasonable is a fact-driven inquiry based on the facts of each case. Energex Enters., Inc. v. Anthony Doors, Inc., 250 F. Supp. 2d 1278, 1283 (D. Colo. 2003). However, in a recent case decided on September 20, 2024, it was determined by a federal court in Colorado that a non-solicitation agreement containing no geographic scope at all is by definition unreasonable and enforceable. Integrity Sols., Ltd. v. MCS Consulting, Inc., 2024 U.S. Dist. LEXIS 170585, *12-13, 2024 U.S.P.Q.2D (BNA) 1701, 2024 WL 4252819.
For more information, please refer to my blog entries which can be found at the following links:
- Are Non-Competes Enforceable in Colorado?
- Are Non-Competes Still Enforceable in Colorado?
- Can I Move to California to Avoid My Colorado Non-Compete Agreement?
- Can your Employer Demand that you Sign a Non-Compete Agreement?
To schedule a free consultation about Colorado non-compete agreements, call 303 785 7777.
The information on this website is intended to be general information only and not legal advice. Laws change frequently and the information on this website may not be up to date, nor is the information intended to be fully comprehensive. For legal advice specific to your case, you will need to contact and then agree in writing to retain the Hansen Law Firm or another licensed attorney.