Colorado Senate Bill 83
Session 2025A
Limitations on Restrictive Employment Agreements
Became Law
Signed by Governor on Jun 3, 2025
Sponsors
First Action
Jan 23, 2025
Latest Action
Jun 3, 2025
Origin Chamber
Senate
Type
Bill
Bill Number
83
State
Colorado
Session
2025A
Motion Text
REPASS
Senate Roll Call Votes
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President
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Summary
Under current law, there is an exemption from the general prohibition against covenants not to compete. The exemption allows for a covenant not to compete under specified conditions governing an individual who earns an amount of annualized cash compensation equivalent to or greater than the threshold amount for highly compensated workers. The act excludes from the highly compensated worker exemption a covenant not to compete that restricts the practice of medicine, the practice of advanced practice registered nursing, or the practice of dentistry in this state.
Under current law, there is also an exemption from the general prohibition against covenants not to solicit customers (nonsolicitation covenant) that allows for a nonsolicitation covenant governing an individual who earns an amount of annualized cash compensation equivalent to or greater than 60% of the threshold amount for highly compensated workers if the nonsolicitation covenant is no broader than reasonably necessary to protect the employer's legitimate interest in protecting trade secrets. The act also excludes from the highly compensated worker exemption for nonsolicitation covenants a covenant not to compete that restricts the practice of medicine, the practice of advanced practice registered nursing, or the practice of dentistry.
A covenant not to compete governing an individual who has a minority ownership share of a business and who received their ownership share in the business as equity compensation or otherwise in connection with services rendered is permissible if the covenant's duration in years does not exceed a number calculated by the total consideration received by the individual from the sale divided by the average annualized cash compensation received by the individual from the business, including income received on account of the individual's ownership interest during the preceding 2 years or during the period of time that the individual was affiliated with the business, whichever period of time is shorter.
The act prohibits a covenant that prevents or materially restricts a health-care provider from disclosing to a patient to whom the health-care provider was providing consultation or treatment before the health-care provider's departure from a medical or dental practice the following information:
The health-care provider's continuing practice of medicine;
The health-care provider's new professional contact information; or
The patient's right to choose a health-care provider.(Note: This summary applies to this bill as enacted.)
Signed Act (06/03/2025)
Final Act (05/08/2025)
Rerevised (04/14/2025)
Revised (04/11/2025)
Reengrossed (03/12/2025)
Engrossed (03/11/2025)
Introduced (01/23/2025)
PA2 (04/07/2025)
PA1 (03/07/2025)
Committee Amendment
Fiscal Note FN2 (07/31/2025)
Fiscal Note FN1 (02/11/2025)
Sort by most recent
06/03/2025
Office of the Governor
Governor Signed
05/08/2025
Office of the Governor
Sent to the Governor
05/08/2025
House
Signed by the Speaker of the House
05/08/2025
Senate
Signed by the President of the Senate
04/21/2025
Senate
Senate Considered House Amendments - Result was to Concur - Repass
04/14/2025
House
House Third Reading Passed - No Amendments
04/11/2025
House
House Second Reading Special Order - Passed with Amendments - Committee, Floor
04/08/2025
House
House Second Reading Laid Over Daily - No Amendments
04/03/2025
House
House Committee on Business Affairs & Labor Refer Amended to House Committee of the Whole
03/12/2025
House
Introduced In House - Assigned to Business Affairs & Labor
03/12/2025
Senate
Senate Third Reading Passed - No Amendments
03/11/2025
Senate
Senate Second Reading Passed with Amendments - Committee
03/06/2025
Senate
Senate Committee on Business, Labor, & Technology Refer Amended to Senate Committee of the Whole
01/23/2025
Senate
Introduced In Senate - Assigned to Business, Labor, & Technology
Sources
CO Legislature
Record Created
Jan 23, 2025 10:50:42 PM
Record Updated
Aug 3, 2025 7:37:40 AM