Noncompetes Limited in Colorado to ‘Highly Compensated’ Workers

Colorado banned employee noncompete clauses for workers making less than six figures annually, under legislation Gov. Jared Polis (D) signed into law Wednesday.

The measure, HB 22-1317, puts Colorado among the states with the strictest income-based limits on workplace noncompete agreements. At least 10 other states have passed laws in the last six years to ban noncompetes for low-wage workers, although the income thresholds in those laws vary widely from about $30,000 of annual income in New Hampshire to $100,000 or more in Washington state, Oregon, and now Colorado.

• Colorado law already limited the use of noncompetes to executives, ...