In the latest round of Colorado's annual updates to its noncompete statute, C.R.S. § 8-2-113, Colorado enacted Senate Bill 25-083 this summer, which added new restrictions relevant to health care workers and in the sale-of-business context.
In the latest round of Colorado's annual updates to its noncompete statute, C.R.S. § 8-2-113, Colorado enacted Senate Bill 25-083 this summer, which added new restrictions relevant to health care workers and in the sale-of-business context. The amendments to the statute further restrict noncompete and non-solicitation agreements for physicians and other health care workers. The amendments also cap the duration of noncompete and customer non-solicitation clauses in sale-of-business agreements involving minority owners.
I. Health Care Workers
Prior to the 2025 amendments, Colorado law prohibited noncompete agreements with physicians, restricting the physicians' right to practice medicine but allowed physicians to agree to a liquidated damages provision (to be imposed at the termination of employment), so long as the liquidated damages were reasonably related to the injury suffered by improper termination or competition.
The 2025 amendments extend the ban on health care noncompetes — in addition to physicians — to encompass individuals licensed to practice medicine (including physician assistants), registered to engage in the practice of advanced practice registered nursing, licensed to practice as a certified midwife, or licensed to...
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