Click here to download a copy of this client alert.
Effective August 6, 2025, significant updates will be made to Colorado’s statute governing non-compete agreements, C.R.S. § 8-2-113, particularly affecting the exception for sale of business interests and the provision governing healthcare providers.
Currently in Colorado, non-compete and non-solicitation of customer agreements are void unless, among other things, they apply to employees who meet certain salary thresholds, and they are narrowly tailored for the protection of trade secrets. C.R.S. § 8-2-113(2). A covenant for the purchase and sale of a business or the assets of a business currently is enforceable without restrictions. The statute also currently addresses non-compete agreements with physicians separately making them void but allowing the enforcement of liquidated damages provisions tied to termination of employment agreements or for damages related to competition.
Cap on Restrictions in Connection with the Sale of a Business for Minority Owners
SB 25-083 preserves the existing exception allowing non-compete agreements in connection with the purchase and sale of a business, a direct or indirect ownership share in a business, or all or substantially all the assets in a business. Importantly, however, a cap has been placed on the duration of these non-compete agreements for individuals who own a minority share of the business (less than 50%) and who received their ownership share in the business as equity...
The offshore world has always attracted strong opinions. It’s complex, global, and full of moving parts that most people don’t fully understand. Mix that with online anonymity and you suddenly hav...