Colorado Covenants
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How to fill out Covenants?
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FAQ
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.
Current law declares that a covenant not to compete that restricts the right of any person to receive compensation for performance of labor for any employer is void, with certain exceptions.
Covenants of seisin, peaceable possession, freedom from encumbrances, and warranty contained in any conveyance of real estate, or any interest therein, shall run with the premises and inure to the benefit of all subsequent purchasers and encumbrancers.
Restrictive covenants can be placed on older properties too. The age of the covenant doesn't necessarily affect its validity. However in some cases, very old covenants are considered unenforceable.
Summary of Colorado's Non-Compete Statute A non-compete agreement can only be enforced against a worker who earns at least $101,250 annually (or the adjusted salary threshold then in effect).
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.
A registered restrictive covenant is recorded on the title of the burdened land but is not recorded on the title of benefiting land. If the benefited land has been subdivided and re-subdivided, you might need to search the original plan of the subdivision and earlier titles to identify the benefited owners.
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.
