The Ins and Outs of Colorado House Bill 22-1317
Introduction
Overview and Importance In the heart of Colorado’s legal landscape, a significant change has emerged that demands every small business owner’s attention: Colorado House Bill 22-1317. Signed into law on June 8, 2022, and effective as of August 10, 2022, this legislation reshapes the way non-compete, non-solicit, confidentiality, and non-disclosure agreements are used within the state. For small business owners navigating the complexities of growth and protection of intellectual assets, understanding the ins and outs of this bill is not just important—it’s essential. Impact on Employers For employers, particularly those within the burgeoning Denver business community, the implications are vast and multifaceted. The law primarily targets restrictive employment agreements, setting new thresholds for enforceability based on compensation levels and imposing stringent notice requirements.- Non-Competes: Now largely limited to “highly compensated” workers earning above $101,250.
- Non-Solicits: Restricted based on the worker’s earning threshold.
- Confidentiality Agreements: Remain enforceable provided they adhere to specified limitations.
- Penalties: Employers face significant fines for non-compliance.