In June 2023, Colorado Gov. Jared Polis signed into law the Protecting Opportunities and Workers’ Rights (POWR) Act, which, among other things, substantially limits the use of nondisclosure agreements, lowers the burden of proof for workplace harassment claims and imposes new record-keeping requirements on employers with employees working in Colorado. We outline the key provisions of the act – which took effect on August 7, 2023 – below.
The POWR Act declares that it is the state’s public policy to encourage “free reporting, discussion, and exposure of discriminatory or unfair employment practices” to better protect employees. Therefore, the POWR Act makes clear that “attempts to interfere with employees’ ability to communicate about and report alleged discriminatory or unfair employment practices are contrary to the public policy of the state.”
In alignment with these objectives, the POWR Act substantially limits an employer’s ability to use nondisclosure agreements entered into or renewed on or after August 7, 2023. Under the act, such provisions that limit an employee’s or prospective employee’s ability to “disclose or discuss” any alleged discriminatory or unfair employment practices are now void, unless the agreement satisfies all of the following requirements:
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