Colorado 2022 Regular Session

Colorado House Bill HB1216

Introduced
2/9/22  
Refer
2/9/22  

Caption

Uniform Restrictive Employment Agreement Act

Impact

Should this bill be enacted, it would reform many existing statutes surrounding employment in Colorado. By prohibiting noncompete agreements for low-wage workers and requiring that employers provide advance notice and specify the conditions of any restrictive agreements, the bill aims to enhance fairness and transparency in employment relationships. It would empower workers to seek alternative employment without fear of retribution through enforced agreements, thereby potentially increasing labor market mobility for low-wage workers and fostering a more competitive job market.

Summary

House Bill 1216, titled the Uniform Restrictive Employment Agreement Act, aims to regulate various forms of restrictive employment agreements, including noncompete, confidentiality, and nonsolicitation agreements. This legislation focuses on ensuring that low-wage workers, defined as those earning less than the state's annual mean wage, are protected from potentially exploitative agreements that could limit their employability after leaving an organization. The bill explicitly prohibits noncompete agreements and similar restrictive contracts for these workers, providing a significant shift in protecting lower-income employees from burdensome employment restrictions.

Contention

While the bill has garnered support for its progressive approach to employment rights, it may face opposition from businesses concerned about the implications of restricting their ability to protect trade secrets or customer relationships through such agreements. Advocates for the law argue that the protection of low-wage workers outweighs potential drawbacks, while opponents may contend that some restrictions are necessary to maintain competitive business practices. Overall, the discussion surrounding this bill highlights ongoing tensions between worker rights and employer protections in the ever-evolving landscape of labor law.

Companion Bills

No companion bills found.

Similar Bills

NC H973

Uniform Restrictive Employment Agreement Act

CO HB1317

Restrictive Employment Agreements

RI S0302

Prohibits noncompete agreements except for noncompete agreements between a seller and buyer of a business; creates civil action for an employer for the violation of an agreement by employee regarding disclosure or wrongful utilization of trade secrets.

LA SB385

Restricts non-competition agreements involving physicians. (8/1/22)

CT SB00377

An Act Prohibiting The Use Of Noncompete Clauses In Physician Employment Contracts.

CT SB00143

An Act Prohibiting Covenants Not To Compete Involving Physicians.

CT SB00906

An Act Concerning Noncompete Agreements.

CT HB06594

An Act Concerning Noncompete Agreements.