Adding to a growing nationwide trend placing restrictions on the use of non-competition agreements in employment contracts, Colorado is the most recent state to adopt exacting restrictions on employers’ use of post-termination restrictive covenants. Set to take effect on August 10, 2022, the recently-signed House Bill 22-1317 dramatically amends Colorado’s non-compete statute, Colo. Rev. Stat. § 8-2-113, in the following ways:
Income Threshold: Covenants not to compete entered into after August 10 will only be enforced against “highly compensated” employees, according to thresholds set by the state’s Department of Labor and scaled for inflation, which for now means those earning at least $101,250 per year. This rigid, bright-line income threshold replaces the statute’s prior test, which limited enforcement to agreements with executives, officers, certain management and professional employees, and those with access to trade secrets, without regard for earnings. The income threshold applies at the time the covenant is entered and at the time the covenant is enforced. Since many workers will be employed by a new employer at the time of enforcement, this requirement presents a vexing conundrum to employers who lack visibility into an employee’s new income, and which threshold could be defeated by the new employer deferring some part of the worker’s compensation.
Narrowing of Legitimate Protectable Interests: In addition to the income threshold,...
BEIJING – The China Coast Guard (CCG) on Thursday warned the Philippine side to immediately stop its infringements, provocations and false claims after a Philippine Coast Guard vessel transported ...