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HB22-1216

Uniform Restrictive Employment Agreement Act

Concerning the regulation of restrictive employment agreements through the enactment of the "Uniform Restrictive Employment Agreement Act".
Session:
2022 Regular Session
Subject:
Labor & Employment
Bill Summary

Colorado Commission on Uniform State Laws. The bill enacts the "Uniform Restrictive Employment Agreement Act" as drafted by the Uniform Law Commission, which regulates agreements between an employer and a worker or employee that prohibit or limit the worker or employee from working after the work relationship with the employer ends.

The bill:

  • Regulates all restrictive post-employment agreements, including noncompete agreements, confidentiality agreements, no-business agreements, nonsolicitation agreements, no-recruit agreements, payment-for-competition agreements, and training reimbursements agreements;
  • Prohibits noncompete agreements and all other restrictive agreements, except confidentiality agreements and training-reimbursement agreements, for low-wage workers, defined as those making less than the state's annual mean wage;
  • Requires advance notice and other procedural requirements for an enforceable noncompete agreement or other restrictive agreement; and
  • Creates penalties and enforcement by the state as well as private rights of action.
    (Note: This summary applies to this bill as introduced.)

Status

Introduced
Lost

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Bill Text

Sponsors

Sponsor Type Legislators
Prime Sponsor

Rep. K. Tipper
Sen. J. Bridges

Sponsor

Co-sponsor

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