As now we’ve got beforehand reported, the Colorado Assembly handed sweeping changes to the state’s noncompete laws that, amongst totally different points, (1) set compensation flooring for enforcement of every noncompetes ($101,250) and purchaser non-solicitation agreements ($60,750), which may be adjusted yearly based on inflation; (2) require a separate, standalone uncover to employees sooner than a model new or potential worker accepts a suggestion of employment, or a minimum of 14 days sooner than the earlier of: (a) the environment friendly date of the restrictions, or (b) the environment friendly date of any additional compensation or changes inside the phrases or circumstances of employment that provides consideration for the restriction, for present employees; and (3) prohibit the inclusion of out-of-state choice-of-law and venue provisions. These amendments take affect proper now, August 10, 2022.
Compliance with these amendments is far more very important ensuing from a earlier modification, environment friendly earlier this yr, which provides that violations of Colorado’s noncompete laws can subject employers to jail obligation (a Class 2 misdemeanor, which carries attainable punishment of 120 days in jail, a $750 optimistic per violation, or every), along with hefty fines and attainable injunctive discount and attorneys’ expenses to aggrieved employees.
Our prior reporting on the small print of the amendments could also be found proper right here:
- Solely One Month Until Dramatic Changes in Colorado’s Restrictive Covenants Laws (July 12, 2022)
- Colorado Continues Its Crackdown on Restrictive Covenants (Would possibly 19, 2022)
- Small Change in Colorado Laws Would possibly Have Huge Influence: Criminalizing Restrictive Covenants (January 13, 2022)
Subsequent up is Washington, DC, the place a model new noncompete laws will take affect on October 1, 2022. That laws equally consists of compensation flooring, uncover requirements, and totally different limitations on noncompetes. Preserve tuned for added updates as that date attracts near.