If you are planning on buying a home, condominium, townhouse, or other property, you must take note of whether any restrictive covenants will affect your ability to use your new residence.
Colorado Agreement Creating Restrictive Covenants
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On August 10, 2022, Colorado House Bill 22-1317 became law. Following the national trend of limiting employer use of non-compete and non-solicit covenants, Colorado now prohibits the use of non-competes and non-solicits except in the sale of business context and with ?highly compensated? workers.
Colorado Revised Statutes Title 8. Labor and Industry § 8-2-113. Unlawful to intimidate worker--agreement not to compete. (1) It shall be unlawful to use force, threats, or other means of intimidation to prevent any person from engaging in any lawful occupation at any place he sees fit.
On August 10, 2022, Colorado House Bill 22-1317 became law. Following the national trend of limiting employer use of non-compete and non-solicit covenants, Colorado now prohibits the use of non-competes and non-solicits except in the sale of business context and with ?highly compensated? workers.
Restrictive covenants in the labor and employment context are agreements between an employer and employee that restrict the activities of an employee following a separation of employment.
New Colorado Law Prohibits Non-Disparagement and Non-Disclosure Agreements which Prohibit Disclosure of Unfair Employment Practices. On August 7, 2023, the ?POWR? Act will go into effect. As discussed in a previous blog post, this new law will change the law of workplace discrimination and harassment in many ways.
The bill enacts the "Uniform Restrictive Employment Agreement Act" as drafted by the Uniform Law Commission, which regulates agreements between an employer and a worker or employee that prohibit or limit the worker or employee from working after the work relationship with the employer ends.
The act prohibits an employer from entering into, presenting to a worker or prospective worker as a term of employment, or attempting to enforce any covenant not to compete that is void under the act.
Put simply, restrictive covenants or restrictions prevent employees from competing with a business after employment ends. An example of a restrictive covenant is a 'non-compete' clause. Such a clause prevents an individual from joining a competitor for a specific time.