Under C.R.S. § 8-2-113, a non-compete is valid only when it protects legitimate trade secrets and binds a “highly compensated” employee, which is set at $123,750 for 2025 and adjusted annually. Any restriction should be kept short in duration and confined to a clearly defined geographic area. Courts have voided agreements that stray from these limits.
Key points to tackle at offer stage
Define trade secrets precisely. Push for language that lists specific technologies or source-code repositories rather than “all proprietary information.” Limit the blackout period. One year is widely viewed as a ceiling, but shorter is safer.
Shrink the map. A global ban rarely survives scrutiny. Tie any restriction to the markets or clients you actually serve. And, be sure to check the pay threshold. If compensation dips below the statutory floor, even after bonuses are tallied, the covenant may be unenforceable.
After an involuntary exit
Many Denver companies draft escape valves that void the covenant if termination is without cause. If none exists, recent guidance suggests a court may still narrow or strike the clause when equity so demands, especially after layoffs.
Practical negotiation checklist
Ask for carve-outs covering open-source contributions, volunteer coding and side projects predating the job. Tie prohibited roles to direct competitors. Identify specific competitors outright or define the group using precise, measurable benchmarks.
Request severance or garden-leave pay equal to the restriction period if the employer insists on a lengthy covenant. Document every discussion. Amended offer letters or addenda help later if enforceability is disputed.
Final thoughts
Denver tech talent can keep career options open by scrutinizing scope, duration and compensation thresholds before signing (and by revisiting the contract after any unexpected separation). Colorado’s statute gives workers bargaining leverage. Use it to ensure any restriction is genuinely necessary and legally sound.