Colorado has transformed from a state that broadly enforced non-competes to one of the most employee-friendly states in the country. If you work in Colorado, your salary level is the first and most critical question in determining whether your non-compete is enforceable.
Colorado's 2026 Salary Thresholds
Colorado's non-compete law sets specific salary thresholds that are adjusted annually. For 2026:
- Non-compete agreements: Only enforceable for employees earning more than $130,014 per year
- Non-solicitation agreements: Only enforceable for employees earning more than $78,008 per year
✅ If you earn $130,014 or less per year, your non-compete agreement is void under Colorado law — regardless of what the contract says. Colorado employers who include unenforceable non-competes face penalties of $5,000 per worker plus potential actual damages and attorneys' fees.
Requirements for Enforceable Non-Competes Above the Threshold
Even for employees above the salary threshold, Colorado imposes strict requirements:
- Must protect a legitimate business interest — trade secrets or confidential information that the employee received access to
- Must be no broader than necessary — the restriction must be narrowly tailored
- Advance notice required — the employer must provide the non-compete before or with the job offer, not after the employee has already accepted
- Must identify the trade secret or confidential information being protected with reasonable specificity
⚠️ Colorado requires that employers provide non-compete agreements before or with the job offer — not after the employee has already accepted and given notice at their prior job. If you received your non-compete after accepting the job, this may be a significant argument against enforceability.
Physician Non-Competes in Colorado
Colorado enacted additional restrictions on physician non-competes in 2025. Physician non-competes face heightened scrutiny due to the public interest in patient access to medical care. Colorado is among the states that have moved to limit or void physician non-competes.
Colorado's Penalties for Violations
Colorado employers who violate the non-compete law face a civil penalty of $5,000 for each worker or prospective worker subject to an unenforceable non-compete. Courts can also award injunctive relief and actual damages. These are meaningful penalties that give employees real leverage.
Geographic Scope and Duration
For non-competes that do meet the salary threshold and other requirements, Colorado courts still evaluate whether the restrictions are reasonable in duration and geographic scope. The restriction must be no broader than necessary to protect the employer's specific legitimate interest.