ColoradoSB25-0832025 Regular SessionSenateWALLET

Limitations on Restrictive Employment Agreements

Sponsored By: Kyle Brown (Democratic), Lindsey Daugherty (Democratic), Lisa Frizell (Republican), Lori Garcia Sander (Republican)

Signed by Governor

Health Care & Health InsuranceLabor & Employment

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

Fewer job restrictions for health-care providers

Colorado excludes restrictions on practicing medicine, advanced practice nursing, or dentistry from two exceptions allowing work restrictions. Generally, these exceptions require full-year cash pay of at least the highly paid worker threshold, or 60% for customer-solicitation limits. Both pay tests apply when agreements are signed and enforced; restrictions must be narrowly limited to protecting trade secrets. Protected patient messages include continued practice, new professional contact details, and patient choice, for patients consulted or treated before departure. These rules cover agreements entered into or renewed on or after the law’s effective date.

Worker expense repayments shrink over time

Employers can require repayment of covered relocation costs, signing bonuses, and payments to establish a health-care practice in a specified area. Covered costs also include health-care provider recruiting and individual provider marketing expenses. Relocation repayment is limited to reasonable relocation costs. Any allowed recovery must fall proportionately with each month since employment began and end within three years.

Some minority owners get noncompete limits

Business sales can include owner noncompetes, including sales of ownership shares or all or substantially all business assets. A duration cap protects minority owners who received their shares as equity pay or for services. Maximum years equal the sale payment received divided by average yearly cash pay from the business, including ownership income. That average uses the shorter of the prior two years or the owner’s time with the business.

Worker secrecy rules retain key limits

Employers can enforce reasonable confidentiality and trade-secret terms relevant to their business. Those terms cannot block sharing general training, knowledge, skills, experience, publicly available information, or legally protected disclosures. Lawful agreement terms remain enforceable, with legal remedies including agreed damages. These rules do not make unlawful work restrictions enforceable.

Sponsors & Cosponsors

Sponsors

  • Kyle Brown

    Democratic • House

  • Lindsey Daugherty

    Democratic • Senate

  • Lisa Frizell

    Republican • Senate

  • Lori Garcia Sander

    Republican • House

Cosponsors

  • Andrew Boesenecker

    Democratic • House

  • Chad Clifford

    Democratic • House

  • Sheila Lieder

    Democratic • House

  • Cathy Kipp

    Democratic • Senate

  • Sen. F. Winter

    Affiliation unavailable

  • Iman Jodeh

    Democratic • Senate

  • Jeff Bridges

    Democratic • Senate

  • James Coleman

    Democratic • Senate

  • Lisa Cutter

    Democratic • Senate

  • Marc Snyder

    Democratic • Senate

  • Mike Weissman

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 213 • No: 61

Senate vote • 4/21/2025

House amendments: Repass

Yes: 28 • No: 7

Senate vote • 4/21/2025

House amendments: Concur

Yes: 35 • No: 0

House vote • 4/14/2025

Third reading: Bill

Yes: 56 • No: 8

House vote • 4/11/2025

Committee of the whole: Amd (h.001)

Yes: 32 • No: 29

House vote • 4/3/2025

Adopt amendment L.004

Yes: 6 • No: 7

House vote • 4/3/2025

Adopt amendment L.008

Yes: 9 • No: 4

House vote • 4/3/2025

Refer Senate Bill 25-083, as amended, to the Committee of the Whole.

Yes: 13 • No: 0

Senate vote • 3/12/2025

Third reading: Bill

Yes: 29 • No: 5

Senate vote • 3/6/2025

Refer Senate Bill 25-083, as amended, to the Committee of the Whole.

Yes: 5 • No: 1

Actions Timeline

  1. Governor Signed

    6/3/2025House
  2. Signed by the President of the Senate

    5/8/2025Senate
  3. Signed by the Speaker of the House

    5/8/2025House
  4. Sent to the Governor

    5/8/2025House
  5. Senate Considered House Amendments - Result was to Concur - Repass

    4/21/2025Senate
  6. House Third Reading Passed - No Amendments

    4/14/2025House
  7. House Second Reading Special Order - Passed with Amendments - Committee, Floor

    4/11/2025House
  8. House Second Reading Laid Over Daily - No Amendments

    4/8/2025House
  9. House Committee on Business Affairs & Labor Refer Amended to House Committee of the Whole

    4/3/2025House
  10. Senate Third Reading Passed - No Amendments

    3/12/2025Senate
  11. Introduced In House - Assigned to Business Affairs & Labor

    3/12/2025House
  12. Senate Second Reading Passed with Amendments - Committee

    3/11/2025Senate
  13. Senate Committee on Business, Labor, & Technology Refer Amended to Senate Committee of the Whole

    3/6/2025Senate
  14. Introduced In Senate - Assigned to Business, Labor, & Technology

    1/23/2025Senate

Bill Text

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