First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 23-0369.01 Jason Gelender x4330
SENATE BILL 23-053
Senate Committees House Committees
State, Veterans, & Military Affairs
A BILL FOR AN ACT
C
ONCERNING RESTRICTIONS ON NO NDISCLOSURE AGREEMENTS THAT101
AFFECT GOVERNMENT EMPLOYEES .102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill prohibits the state, counties, cities and counties,
municipalities, schools districts, and any of their departments, institutions,
or agencies from making it a condition of employment that an employee
or a prospective employee executes a contract or other form of agreement
that prohibits, prevents, or otherwise restricts the employee or prospective
employee from disclosing factual circumstances concerning the
SENATE
Amended 2nd Reading
March 23, 2023
SENATE SPONSORSHIP
Kirkmeyer and Rodriguez,
HOUSE SPONSORSHIP
Woodrow and Evans,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. individual's employment with the government (nondisclosure agreement)
unless the nondisclosure agreement is necessary to prevent disclosure of:
! Factual circumstances relating to the employment that
reasonably implicate privacy interests held by the employee
who is a party to the agreement; or
! Matters required to be kept confidential by federal law or
rules, the state constitution, or state statute, or matters
bearing on the specialized details of security arrangements
or investigations.
The bill prohibits nondisclosure agreements that prohibit
employees of the state, counties, city and counties, municipalities, school
districts, or any of their departments, institutions, or agencies from
disclosing factual circumstances concerning their employment. To the
extent that an employer includes any such provision in any employment
contract or agreement, the provision is deemed to be against public policy
and unenforceable against a current or former employee who is a party to
the contract or agreement unless the provision is intended to prevent
disclosure of factual circumstances implicating the employee's privacy
interests, matters required to be kept confidential under federal law or
rules, the state constitution, or state statute, or matters bearing on the
specialized details of security arrangements or investigations.
The bill prohibits the state, counties, city and counties,
municipalities, or any of their departments, institutions, or agencies from
taking any retaliatory action against an individual on the grounds that the
individual does not enter into a contract or agreement deemed to be
against public policy and unenforceable under the bill. Any person who
enforces or attempts to enforce a provision deemed to be against public
policy and unenforceable under the bill is liable for the employee's
reasonable attorney fees and costs in defending against the action.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds and declares that:3
(a) (I) Government employees, including employees of the state,4
counties, cities and counties, municipalities, school districts, and any5
department, institution, or agency of any such government, are public6
servants who are hired to undertake their job duties and responsibilities7
to serve the public;8
053-2- (II) Government employees are paid with public money, and they1
and their employers are accountable to the public for the manner in which2
they carry out their public duties and responsibilities;3
(III) The public has a fundamental interest in transparency4
concerning the conduct of government, including state government,5
county government, city and county government, municipal government,6
and school district government. From the free speech provisions of its7
founding constitution to the enactment of laws requiring that meetings be8
conducted in an open manner and that public records be broadly9
disclosed, the state of Colorado has been at the forefront of efforts to10
ensure that the formation of public policy is public business that may not11
be conducted in secret. These constitutional and statutory requirements12
are intended to provide the public with as much knowledge as possible13
about how public business is being conducted while it is being conducted;14
(IV) Nondisclosure agreements imposed on applicants for15
government employment, government employees, and past government16
employees that effectively prohibit such applicants and employees from17
disclosing details about their prospective, current, or past government18
service obstruct these fundamental principles of government transparency19
and public accountability. The details of public business should not be20
hidden from public view by means of nondisclosure agreements imposed21
on such applicants or employees as a condition of their hiring or22
employment or in connection with their leaving government service or23
their past government service; and24
(V) In the absence of legitimate concerns about the protection of25
the privacy interests of applicants for government employment,26
government employees, and past government employees, or to protect27
053
-3- against disclosure matters that are truly confidential and sensitive to the1
public interest, neither the state nor any of its departments, institutions,2
or agencies should be permitted to silence such applicants and employees3
from being able to speak openly about their prospective, current, or past4
government service through the imposition of nondisclosure agreements.5
Such applicants and employees should ordinarily be permitted to speak6
openly about their prospective, current, or past government service.7
(b) By enacting this act, the general assembly intends to restrict8
the ability of a government, including the state, a county, a city and9
county, a municipality, or a school district, or any department, institution,10
or agency of a government, from requiring applicants for employment or11
employees to enter into nondisclosure agreements as a condition of their12
being hired. Nor may such a government, department, institution, or13
agency insist upon the enforcement of a nondisclosure agreement when14
or after an employee ends their employment with the government,15
department, institution, or agency. The general assembly intends that,16
absent the presence of very select circumstances, enforcement of such17
nondisclosure agreements be prohibited and that such nondisclosure18
agreements be deemed void as against public policy and of no legal force19
and effect. The general assembly further intends that this act be liberally20
construed to further the fundamental principle that state government be21
conducted in public to the greatest extent possible; and22
(c) Transparency concerning the conduct of government is a23
matter of statewide concern and, therefore, the provisions of this act apply24
to all counties, cities and counties, municipalities, and school districts25
including home rule counties, cities and counties, and municipalities.26
SECTION 2. In Colorado Revised Statutes, add 22-1-135.5 as27
053
-4- follows:1
22-1-135.5. Nondisclosure agreements - protection of school2
district, board of cooperative services, and public school employees3
- definition. (1) (a) NO SCHOOL DISTRICT, BOARD OF COOPERATIVE4
SERVICES, PUBLIC SCHOOL, OR ANY DEPARTMENT , INSTITUTION, OR5
AGENCY OF A SCHOOL DISTRICT, BOARD OF COOPERATIVE SERVICES , OR6
PUBLIC SCHOOL SHALL MAKE IT A CONDITION OF EMPLOYMENT THAT AN7
EMPLOYEE EXECUTES A CONTRACT OR OTHER FORM OF AGREEMENT8
THAT PROHIBITS, PREVENTS, OR OTHERWISE RESTRICTS THE EMPLOYEE 9
FROM DISCLOSING FACTUAL CIRCUMSTANCES CONCERNING THE10
EMPLOYEE'S EMPLOYMENT WITH THE SCHOOL DISTRICT , BOARD OF11
COOPERATIVE SERVICES, OR PUBLIC SCHOOL OR ANY OF ITS DEPARTMENTS,12
INSTITUTIONS, OR AGENCIES UNLESS THE PROHIBITION OR RESTRICTION IN13
THE CONTRACT OR AGREEMENT IS NECESSARY TO PREVENT DISCLOSURE14
OF:15
(I) T
HE EMPLOYEE'S IDENTITY, FACTS THAT MIGHT LEAD TO THE
16
DISCOVERY OF THE EMPLOYEE'S IDENTITY, OR FACTUAL CIRCUMSTANCES17
RELATING TO THE EMPLOYMENT THAT REASONABLY IMPLICATE18
LEGITIMATE PRIVACY INTERESTS OF THE EMPLOYEE WHO IS A PARTY TO19
THE AGREEMENT IF THE EMPLOYEE ELECTS IN THE EMPLOYEE 'S SOLE20
DISCRETION TO RESTRICT DISCLOSURE OF THE EMPLOYEE 'S IDENTITY, SUCH21
FACTS, OR SUCH CIRCUMSTANCES ON SUCH GROUNDS ; 22
(II) D
ATA; INFORMATION, INCLUDING PERSONAL IDENTIFYING
23
INFORMATION, AS DEFINED IN SECTION 24-74-102 (1); OR MATTERS THAT24
ARE REQUIRED TO BE KEPT CONFIDENTIAL BY FEDERAL LAW OR25
REGULATIONS, THE STATE CONSTITUTION, OR STATE LAW OR RULES;26
(III) T
RADE SECRETS OR OTHER CONFIDENTIAL OR SENSITIVE
27
053
-5- INFORMATION PROVIDED TO OR MADE ACCESSIBLE TO THE EMPLOYEE BY1
A CONTRACTOR OR PROSPECTIVE CONTRACTOR OF THE EMPLOYEE 'S2
EMPLOYER DURING THE PROCUREMENT PROCESS OR WHILE THE3
CONTRACTOR IS PROVIDING GOODS OR SERVICES TO THE EMPLOYEE 'S4
EMPLOYER IF THE PROTECTION OF SUCH INFORMATION IS NEEDED TO5
ENSURE SUCCESSFUL PROCUREMENT OR PROVISION OF THE GOODS OR6
SERVICES; OR7
(IV) I
NFORMATION
BEARING ON THE SPECIALIZED DETAILS OF8
SECURITY ARRANGEMENTS OR INVESTIGATIONS .9
(b) A
NY PROVISION IN ANY EMPLOYMENT CONTRACT OR10
SETTLEMENT AGREEMENT ENTERED INTO BETWEEN AN EMPLOYEE OF A11
SCHOOL DISTRICT, BOARD OF COOPERATIVE SERVICES, OR PUBLIC SCHOOL12
OR ANY DEPARTMENT, INSTITUTION, OR AGENCY OF A SCHOOL DISTRICT,13
A BOARD OF COOPERATIVE SERVICES , OR A PUBLIC SCHOOL, AND THE14
SCHOOL DISTRICT, BOARD OF COOPERATIVE SERVICES , PUBLIC SCHOOL,15
DEPARTMENT, INSTITUTION, OR AGENCY THAT HAS THE PURPOSE OR16
EFFECT OF CONCEALING FACTUAL CIRCUMSTANCES CONCERNING THE17
EMPLOYEE'S
EMPLOYMENT WITH THE SCHOOL DISTRICT , BOARD OF18
COOPERATIVE SERVICES, PUBLIC SCHOOL, DEPARTMENT, INSTITUTION, OR19
AGENCY IS PROHIBITED. TO THE EXTENT THAT AN EMPLOYER INCLUDES20
ANY SUCH PROVISION IN ANY EMPLOYMENT CONTRACT OR AGREEMENT ,21
THE PROVISION IS DEEMED TO BE AGAINST PUBLIC POLICY AND22
UNENFORCEABLE AGAINST AN EMPLOYEE WHO IS A PARTY TO THE23
CONTRACT OR AGREEMENT UNLESS THE PROVISION IS INTENDED TO24
PREVENT DISCLOSURE OF:25
(I) T
HE EMPLOYEE'S IDENTITY, FACTS THAT MIGHT LEAD TO THE
26
DISCOVERY OF THE EMPLOYEE'S IDENTITY, OR FACTUAL CIRCUMSTANCES27
053
-6- RELATING TO THE EMPLOYMENT THAT REASONABLY IMPLICATE1
LEGITIMATE PRIVACY INTERESTS OF THE EMPLOYEE WHO IS A PARTY TO2
THE AGREEMENT IF THE EMPLOYEE ELECTS IN THE EMPLOYEE 'S SOLE3
DISCRETION TO RESTRICT DISCLOSURE OF THE EMPLOYEE 'S IDENTITY, SUCH4
FACTS, OR SUCH CIRCUMSTANCES ON SUCH GROUNDS ; 5
(II) D
ATA; INFORMATION, INCLUDING PERSONAL IDENTIFYING
6
INFORMATION, AS DEFINED IN SECTION 24-74-102 (1); OR MATTERS THAT7
ARE REQUIRED TO BE KEPT CONFIDENTIAL BY FEDERAL LAW OR8
REGULATIONS, THE STATE CONSTITUTION, OR STATE LAW OR RULES;9
(III) T
RADE SECRETS OR OTHER CONFIDENTIAL OR SENSITIVE
10
INFORMATION PROVIDED TO OR MADE ACCESSIBLE TO THE EMPLOYEE BY11
A CONTRACTOR OR PROSPECTIVE CONTRACTOR OF THE EMPLOYEE 'S12
EMPLOYER DURING THE PROCUREMENT PROCESS OR WHILE THE13
CONTRACTOR IS PROVIDING GOODS OR SERVICES TO THE EMPLOYEE 'S14
EMPLOYER IF THE PROTECTION OF SUCH INFORMATION IS NEEDED TO15
ENSURE SUCCESSFUL PROCUREMENT OR PROVISION OF THE GOODS OR16
SERVICES; OR17
(IV) I
NFORMATION
BEARING ON THE SPECIALIZED DETAILS OF18
SECURITY ARRANGEMENTS OR INVESTIGATIONS .19
(2) (a) N
O SCHOOL DISTRICT, BOARD OF COOPERATIVE SERVICES,20
PUBLIC SCHOOL, OR DEPARTMENT, INSTITUTION, OR AGENCY OF A SCHOOL21
DISTRICT, A BOARD OF COOPERATIVE SERVICES , OR A PUBLIC SCHOOL22
SHALL TAKE ANY MATERIALLY ADVERSE EMPLOYMENT -RELATED
ACTION,23
INCLUDING, WITHOUT LIMITATION, WITHDRAWAL OF AN OFFER OF 24
EMPLOYMENT, DISCHARGE, SUSPENSION, DEMOTION, DISCRIMINATION IN25
THE TERMS, CONDITIONS, OR PRIVILEGES OF EMPLOYMENT , OR OTHER26
ADVERSE ACTION AGAINST AN EMPLOYEE ON THE GROUNDS THAT THE27
053
-7- EMPLOYEE DOES NOT ENTER INTO A CONTRACT OR AGREEMENT DEEMED1
TO BE AGAINST PUBLIC POLICY AND UNENFORCEABLE UNDER SUBSECTION2
(1)(b)
OF THIS SECTION. THE TAKING OF SUCH A MATERIALLY ADVERSE
3
EMPLOYMENT-RELATED ACTION AFTER AN EMPLOYEE HAS REFUSED TO4
ENTER INTO SUCH A CONTRACT OR AGREEMENT IS PRIMA FACIE EVIDENCE5
OF RETALIATION.6
(b) A
NY PERSON WHO ENFORCES OR ATTEMPTS TO ENFORCE A7
PROVISION DEEMED TO BE AGAINST PUBLIC POLICY AND UNENFORCEABLE8
PURSUANT TO SUBSECTION (1)(b) OF THIS SECTION IS LIABLE FOR THE9
EMPLOYEE'S REASONABLE ATTORNEY FEES AND COSTS IN DEFENDING10
AGAINST THE ACTION.11
(c) A
N ACTION TO ENFORCE A PROVISION OF THIS SECTION MUST BE
12
BROUGHT IN THE DISTRICT COURT FOR THE DISTRICT IN WHICH THE13
EMPLOYEE IS PRIMARILY EMPLOYED .14
(3) A
SETTLEMENT AGREEMENT BETWEEN AN EMPLOYER THAT IS
15
A SCHOOL DISTRICT, BOARD OF COOPERATIVE SERVICES , OR PUBLIC16
SCHOOL OR A DEPARTMENT , INSTITUTION, OR AGENCY OF A SCHOOL17
DISTRICT, A BOARD OF COOPERATIVE SERVICES, OR A PUBLIC SCHOOL AND18
AN EMPLOYEE OF THE EMPLOYER MUST BE SIGNED BY BOTH THE EMPLOYER19
AND THE EMPLOYEE.20
(4) A
S USED IN THIS SECTION:
21
(a) "C
ONDITION OF EMPLOYMENT " MEANS AN
22
EMPLOYMENT-RELATED POLICY , PRACTICE, REQUIREMENT , OR23
RESTRICTION DICTATED BY AN EMPLOYER THAT AN INDIVIDUAL MUST24
AGREE TO ABIDE BY IN ORDER TO BE HIRED BY OR RETAIN EMPLOYMENT25
WITH THE EMPLOYER.26
(b) "E
MPLOYEE" MEANS AN APPLICANT FOR EMPLOYMENT WITH OR
27
053
-8- CURRENT OR PAST EMPLOYEE OF A SCHOOL DISTRICT , BOARD OF1
COOPERATIVE SERVICES , OR PUBLIC SCHOOL OR A DEPARTMENT ,2
INSTITUTION, OR AGENCY OF A SCHOOL DISTRICT, BOARD OF COOPERATIVE3
SERVICES, OR PUBLIC SCHOOL.4
SECTION 3. In Colorado Revised Statutes, add 24-50.5-105.55
as follows:6
24-50.5-105.5. Nondisclosure agreements - protection of state7
employees - definitions. (1) (a) NEITHER THE STATE NOR ANY8
DEPARTMENT, INSTITUTION, OR AGENCY OF THE STATE SHALL MAKE IT A9
CONDITION OF EMPLOYMENT THAT AN EMPLOYEE EXECUTES A10
CONTRACT OR OTHER FORM OF AGREEMENT THAT PROHIBITS , PREVENTS,11
OR OTHERWISE RESTRICTS THE EMPLOYEE FROM DISCLOSING FACTUAL12
CIRCUMSTANCES CONCERNING THE EMPLOYEE 'S EMPLOYMENT WITH THE13
STATE OR ANY OF ITS DEPARTMENTS, INSTITUTIONS, OR AGENCIES UNLESS14
THE PROHIBITION OR RESTRICTION IN THE CONTRACT OR AGREEMENT IS15
NECESSARY TO PREVENT DISCLOSURE OF :16
(I) T
HE EMPLOYEE'S IDENTITY, FACTS THAT MIGHT LEAD TO THE
17
DISCOVERY OF THE EMPLOYEE'S IDENTITY, OR FACTUAL CIRCUMSTANCES18
RELATING TO THE EMPLOYMENT THAT REASONABLY IMPLICATE19
LEGITIMATE PRIVACY INTERESTS OF THE EMPLOYEE WHO IS A PARTY TO20
THE AGREEMENT IF THE EMPLOYEE ELECTS IN THE EMPLOYEE 'S SOLE21
DISCRETION TO RESTRICT DISCLOSURE OF THE EMPLOYEE 'S IDENTITY, SUCH22
FACTS, OR SUCH CIRCUMSTANCES ON SUCH GROUNDS ; 23
(II) D
ATA; INFORMATION, INCLUDING PERSONAL IDENTIFYING
24
INFORMATION, AS DEFINED IN SECTION 24-74-102 (1); OR MATTERS THAT25
ARE REQUIRED TO BE KEPT CONFIDENTIAL BY FEDERAL LAW OR26
REGULATIONS, THE STATE CONSTITUTION, OR STATE LAW OR RULES;27
053
-9- (III) NONPUBLIC AND CONFIDENTIAL LABOR RELATIONS POSITIONS1
AND STRATEGIES;2
(IV) A
TTORNEY WORK PRODUCT ;
3
(V) V
ENDOR LISTS AND VENDOR PREFERENCES ;
4
(VI) S
TATE BUSINESS-RELATED INFORMATION RECEIVED FROM A
5
THIRD PARTY THAT THE THIRD PARTY HAS DESIGNATED CONFIDENTIAL ;6
(VII) T
RADE SECRETS OR OTHER CONFIDENTIAL OR SENSITIVE
7
INFORMATION PROVIDED TO OR MADE ACCESSIBLE TO THE EMPLOYEE BY8
A CONTRACTOR OR PROSPECTIVE CONTRACTOR OF THE EMPLOYEE 'S9
EMPLOYER DURING THE PROCUREMENT PROCESS OR WHILE THE10
CONTRACTOR IS PROVIDING GOODS OR SERVICES TO THE EMPLOYEE 'S11
EMPLOYER IF THE PROTECTION OF SUCH INFORMATION IS NEEDED TO12
ENSURE SUCCESSFUL PROCUREMENT OR PROVISION OF THE GOODS OR13
SERVICES; OR14
(VIII) I
NFORMATION
BEARING ON THE SPECIALIZED DETAILS OF15
SECURITY ARRANGEMENTS OR INVESTIGATIONS .16
(b) A
NY PROVISION IN ANY EMPLOYMENT CONTRACT OR17
SETTLEMENT AGREEMENT ENTERED INTO BETWEEN AN EMPLOYEE OF THE18
STATE OR ANY OF ITS DEPARTMENTS, INSTITUTIONS, OR AGENCIES AND THE19
STATE OR ANY OF ITS DEPARTMENTS , INSTITUTIONS, OR AGENCIES THAT20
HAS THE PURPOSE OR EFFECT OF CONCEALING FACTUAL CIRCUMSTANCES21
CONCERNING THE EMPLOYEE 'S
EMPLOYMENT WITH THE STATE OR ANY OF22
ITS DEPARTMENTS, INSTITUTIONS, OR AGENCIES IS PROHIBITED. TO THE23
EXTENT THAT AN EMPLOYER INCLUDES ANY SUCH PROVISION IN ANY24
EMPLOYMENT CONTRACT OR AGREEMENT , THE PROVISION IS DEEMED TO25
BE AGAINST PUBLIC POLICY AND UNENFORCEABLE AGAINST AN EMPLOYEE26
WHO IS A PARTY TO THE CONTRACT OR AGREEMENT UNLESS THE27
053
-10- PROVISION IS INTENDED TO PREVENT DISCLOSURE OF :1
(I) T
HE EMPLOYEE'S IDENTITY, FACTS THAT MIGHT LEAD TO THE
2
DISCOVERY OF THE EMPLOYEE'S IDENTITY, OR FACTUAL CIRCUMSTANCES3
RELATING TO THE EMPLOYMENT THAT REASONABLY IMPLICATE4
LEGITIMATE PRIVACY INTERESTS OF THE EMPLOYEE WHO IS A PARTY TO5
THE AGREEMENT IF THE EMPLOYEE ELECTS IN THE EMPLOYEE 'S SOLE6
DISCRETION TO RESTRICT DISCLOSURE OF THE EMPLOYEE 'S IDENTITY, SUCH7
FACTS, OR SUCH CIRCUMSTANCES ON SUCH GROUNDS ; 8
(II) D
ATA; INFORMATION, INCLUDING PERSONAL IDENTIFYING
9
INFORMATION, AS DEFINED IN SECTION 24-74-102 (1); OR MATTERS THAT10
ARE REQUIRED TO BE KEPT CONFIDENTIAL BY FEDERAL LAW OR11
REGULATIONS, THE STATE CONSTITUTION, OR STATE LAW OR RULES;12
(III) N
ONPUBLIC AND CONFIDENTIAL LABOR RELATIONS POSITIONS
13
AND STRATEGIES;14
(IV) A
TTORNEY WORK PRODUCT ;
15
(V) V
ENDOR LISTS AND VENDOR PREFERENCES ;
16
(VI) S
TATE BUSINESS-RELATED INFORMATION RECEIVED FROM A
17
THIRD PARTY THAT THE THIRD PARTY HAS DESIGNATED CONFIDENTIAL ;18
(VII) T
RADE SECRETS OR OTHER CONFIDENTIAL OR SENSITIVE
19
INFORMATION PROVIDED TO OR MADE ACCESSIBLE TO THE EMPLOYEE BY20
A CONTRACTOR OR PROSPECTIVE CONTRACTOR OF THE EMPLOYEE 'S21
EMPLOYER DURING THE PROCUREMENT PROCESS OR WHILE THE22
CONTRACTOR IS PROVIDING GOODS OR SERVICES TO THE EMPLOYEE 'S23
EMPLOYER IF THE PROTECTION OF SUCH INFORMATION IS NEEDED TO24
ENSURE SUCCESSFUL PROCUREMENT OR PROVISION OF THE GOODS OR25
SERVICES; OR26
(VIII) I
NFORMATION
BEARING ON THE SPECIALIZED DETAILS OF27
053
-11- SECURITY ARRANGEMENTS OR INVESTIGATIONS .1
(2) (a) N
EITHER THE STATE NOR ANY OF ITS DEPARTMENTS ,2
INSTITUTIONS, OR AGENCIES SHALL TAKE ANY MATERIALLY ADVERSE
3
EMPLOYMENT-RELATED ACTION, INCLUDING, WITHOUT LIMITATION ,4
WITHDRAWAL OF AN OFFER OF EMPLOYMENT , DISCHARGE, SUSPENSION,5
DEMOTION, DISCRIMINATION IN THE TERMS, CONDITIONS, OR PRIVILEGES6
OF EMPLOYMENT, OR OTHER ADVERSE ACTION AGAINST AN EMPLOYEE ON7
THE GROUNDS THAT THE EMPLOYEE DOES NOT ENTER INTO A CONTRACT8
OR AGREEMENT DEEMED TO BE AGAINST PUBLIC POLICY AND9
UNENFORCEABLE UNDER SUBSECTION (1)(b) OF THIS SECTION. THE TAKING10
OF SUCH A MATERIALLY ADVERSE EMPLOYMENT -RELATED ACTION AFTER11
AN EMPLOYEE HAS REFUSED TO ENTER INTO SUCH A CONTRACT OR12
AGREEMENT IS PRIMA FACIE EVIDENCE OF RETALIATION .13
(b) A
NY PERSON WHO ENFORCES OR ATTEMPTS TO ENFORCE A14
PROVISION DEEMED TO BE AGAINST PUBLIC POLICY AND UNENFORCEABLE15
PURSUANT TO SUBSECTION (1)(b) OF THIS SECTION IS LIABLE FOR THE16
EMPLOYEE'S REASONABLE ATTORNEY FEES AND COSTS IN DEFENDING17
AGAINST THE ACTION.18
(c) A
N ACTION TO ENFORCE A PROVISION OF THIS SECTION MUST BE
19
BROUGHT IN THE DISTRICT COURT FOR THE DISTRICT IN WHICH THE20
EMPLOYEE IS PRIMARILY EMPLOYED .21
(3) A
SETTLEMENT AGREEMENT BETWEEN AN EMPLOYER THAT IS
22
THE STATE OR A DEPARTMENT , INSTITUTION, OR AGENCY OF THE STATE23
AND AN EMPLOYEE OF THE STATE OR THE DEPARTMENT , INSTITUTION, OR24
AGENCY OF THE STATE MUST BE SIGNED BY BOTH THE EMPLOYER AND THE25
EMPLOYEE.26
(4) A
S USED IN THIS SECTION:
27
053
-12- (a) "CONDITION OF EMPLOYMENT " MEANS AN EMPLOYMENT -1
RELATED POLICY, PRACTICE, REQUIREMENT, OR RESTRICTION DICTATED BY2
AN EMPLOYER THAT AN INDIVIDUAL MUST AGREE TO ABIDE BY IN ORDER3
TO BE HIRED BY OR RETAIN EMPLOYMENT WITH THE EMPLOYER . 4
(b) "E
MPLOYEE" MEANS AN APPLICANT FOR EMPLOYMENT WITH OR
5
CURRENT OR PAST EMPLOYEE OF THE STATE OR A DEPARTMENT ,6
INSTITUTION, OR AGENCY OF THE STATE.7
(c) "T
HE STATE" INCLUDES WITHOUT
LIMITATION EACH OF THE8
STATE OFFICERS LISTED IN SECTION 1 OF ARTICLE IV OF THE STATE9
CONSTITUTION AS WELL AS THE EXECUTIVE , LEGISLATIVE, AND JUDICIAL10
DEPARTMENTS OF THE GOVERNMENT OF THE STATE .11
SECTION 4. In Colorado Revised Statutes, add part 16 to article12
1 of title 29 as follows:13
PART 1614
LOCAL GOVERNMENT NONDISCLOSURE AGREEMENTS15
29-1-1601. Nondisclosure agreements - protection of local16
government employees - definitions. (1) (a) NEITHER A LOCAL17
GOVERNMENT NOR A DEPARTMENT , INSTITUTION, OR AGENCY OF A LOCAL18
GOVERNMENT SHALL MAKE IT A CONDITION OF EMPLOYMENT THAT AN19
EMPLOYEE EXECUTES A CONTRACT OR OTHER FORM OF AGREEMENT20
THAT PROHIBITS, PREVENTS, OR OTHERWISE RESTRICTS THE EMPLOYEE 21
FROM DISCLOSING FACTUAL CIRCUMSTANCES CONCERNING THE22
EMPLOYEE'S EMPLOYMENT WITH THE LOCAL GOVERNMENT OR ANY OF ITS23
DEPARTMENTS, INSTITUTIONS, OR AGENCIES UNLESS THE PROHIBITION OR24
RESTRICTION IN THE CONTRACT OR AGREEMENT IS NECESSARY TO PREVENT25
DISCLOSURE OF:26
(I) T
HE EMPLOYEE'S IDENTITY, FACTS THAT MIGHT LEAD TO THE
27
053
-13- DISCOVERY OF THE EMPLOYEE'S IDENTITY, OR FACTUAL CIRCUMSTANCES1
RELATING TO THE EMPLOYMENT THAT REASONABLY IMPLICATE2
LEGITIMATE PRIVACY INTERESTS OF THE EMPLOYEE WHO IS A PARTY TO3
THE AGREEMENT IF THE EMPLOYEE ELECTS IN THE EMPLOYEE 'S SOLE4
DISCRETION TO RESTRICT DISCLOSURE OF THE EMPLOYEE 'S IDENTITY, SUCH5
FACTS, OR SUCH CIRCUMSTANCES ON SUCH GROUNDS ; 6
(II) D
ATA; INFORMATION, INCLUDING PERSONAL IDENTIFYING
7
INFORMATION, AS DEFINED IN SECTION 24-74-102 (1); OR MATTERS THAT8
ARE REQUIRED TO BE KEPT CONFIDENTIAL BY FEDERAL LAW OR9
REGULATIONS, THE STATE CONSTITUTION, OR STATE LAW OR RULES;10
(III) T
RADE SECRETS OR OTHER CONFIDENTIAL OR SENSITIVE
11
INFORMATION PROVIDED TO OR MADE ACCESSIBLE TO THE EMPLOYEE BY12
A CONTRACTOR OR PROSPECTIVE CONTRACTOR OF THE EMPLOYEE 'S13
EMPLOYER DURING THE PROCUREMENT PROCESS OR WHILE THE14
CONTRACTOR IS PROVIDING GOODS OR SERVICES TO THE EMPLOYEE 'S15
EMPLOYER IF THE PROTECTION OF SUCH INFORMATION IS NEEDED TO16
ENSURE SUCCESSFUL PROCUREMENT OR PROVISION OF THE GOODS OR17
SERVICES;18
(IV) T
RADE SECRETS OR OTHER CONFIDENTIAL OR SENSITIVE
19
INFORMATION PROVIDED TO OR MADE ACCESSIBLE TO THE EMPLOYEE BY20
AN EMPLOYER'S CURRENT OR PROSPECTIVE CUSTOMER , CONTRACTOR,21
LESSEE, LESSOR, BUSINESS PARTNER, OR AFFILIATE;22
(V) T
RADE SECRETS OR OTHER CONFIDENTIAL OR SENSITIVE
23
INFORMATION PROVIDED TO OR MADE ACCESSIBLE TO THE EMPLOYEE BY24
A PURCHASER OR SELLER OF PROPERTY THAT IS ENGAGED IN25
NEGOTIATIONS OR UNDER CONTRACT WITH THE EMPLOYER ; OR26
(VI) I
NFORMATION
BEARING ON THE SPECIALIZED DETAILS OF27
053
-14- SECURITY ARRANGEMENTS OR INVESTIGATIONS .1
(b) A
NY PROVISION IN ANY EMPLOYMENT CONTRACT OR2
SETTLEMENT AGREEMENT ENTERED INTO BETWEEN AN EMPLOYEE OF A3
LOCAL GOVERNMENT OR ANY DEPARTMENT , INSTITUTION, OR AGENCY OF4
A LOCAL GOVERNMENT AND THE LOCAL GOVERNMENT , DEPARTMENT,5
INSTITUTION, OR AGENCY THAT HAS THE PURPOSE OR EFFECT OF6
CONCEALING FACTUAL CIRCUMSTANCES CONCERNING THE EMPLOYEE 'S
7
EMPLOYMENT WITH THE LOCAL GOVERNMENT , DEPARTMENT, INSTITUTION,8
OR AGENCY IS PROHIBITED. TO THE EXTENT THAT AN EMPLOYER INCLUDES9
ANY SUCH PROVISION IN ANY EMPLOYMENT CONTRACT OR AGREEMENT ,10
THE PROVISION IS DEEMED TO BE AGAINST PUBLIC POLICY AND11
UNENFORCEABLE AGAINST AN EMPLOYEE WHO IS A PARTY TO THE12
CONTRACT OR AGREEMENT UNLESS THE PROVISION IS INTENDED TO13
PREVENT DISCLOSURE OF:14
(I) T
HE EMPLOYEE'S IDENTITY, FACTS THAT MIGHT LEAD TO THE
15
DISCOVERY OF THE EMPLOYEE'S IDENTITY, OR FACTUAL CIRCUMSTANCES16
RELATING TO THE EMPLOYMENT THAT REASONABLY IMPLICATE17
LEGITIMATE PRIVACY INTERESTS OF THE EMPLOYEE WHO IS A PARTY TO18
THE AGREEMENT IF THE EMPLOYEE ELECTS IN THE EMPLOYEE 'S SOLE19
DISCRETION TO RESTRICT DISCLOSURE OF THE EMPLOYEE 'S IDENTITY, SUCH20
FACTS, OR SUCH CIRCUMSTANCES ON SUCH GROUNDS ; 21
(II) D
ATA; INFORMATION, INCLUDING PERSONAL IDENTIFYING
22
INFORMATION, AS DEFINED IN SECTION 24-74-102 (1); OR MATTERS THAT23
ARE REQUIRED TO BE KEPT CONFIDENTIAL BY FEDERAL LAW OR24
REGULATIONS, THE STATE CONSTITUTION, OR STATE LAW OR RULES;25
(III) T
RADE SECRETS OR OTHER CONFIDENTIAL OR SENSITIVE
26
INFORMATION PROVIDED TO OR MADE ACCESSIBLE TO THE EMPLOYEE BY27
053
-15- A CONTRACTOR OR PROSPECTIVE CONTRACTOR OF THE EMPLOYEE 'S1
EMPLOYER DURING THE PROCUREMENT PROCESS OR WHILE THE2
CONTRACTOR IS PROVIDING GOODS OR SERVICES TO THE EMPLOYEE 'S3
EMPLOYER IF THE PROTECTION OF SUCH INFORMATION IS NEEDED TO4
ENSURE SUCCESSFUL PROCUREMENT OR PROVISION OF THE GOODS OR5
SERVICES;6
(IV) T
RADE SECRETS OR OTHER CONFIDENTIAL OR SENSITIVE
7
INFORMATION PROVIDED TO OR MADE ACCESSIBLE TO THE EMPLOYEE BY8
AN EMPLOYER'S CURRENT OR PROSPECTIVE CUSTOMER , CONTRACTOR,9
LESSEE, LESSOR, BUSINESS PARTNER, OR AFFILIATE;10
(V) T
RADE SECRETS OR OTHER CONFIDENTIAL OR SENSITIVE
11
INFORMATION PROVIDED TO OR MADE ACCESSIBLE TO THE EMPLOYEE BY12
A PURCHASER OR SELLER OF PROPERTY THAT IS ENGAGED IN13
NEGOTIATIONS OR UNDER CONTRACT WITH THE EMPLOYER ; OR14
(VI) I
NFORMATION
BEARING ON THE SPECIALIZED DETAILS OF15
SECURITY ARRANGEMENTS OR INVESTIGATIONS .16
(2) (a) N
EITHER A LOCAL GOVERNMENT NOR A DEPARTMENT , AN17
INSTITUTION, OR AN AGENCY OF A LOCAL GOVERNMENT SHALL TAKE ANY18
MATERIALLY ADVERSE EMPLOYMENT -RELATED
ACTION, INCLUDING,19
WITHOUT LIMITATION, WITHDRAWAL OF AN OFFER OF EMPLOYMENT ,20
DISCHARGE, SUSPENSION, DEMOTION, DISCRIMINATION IN THE TERMS ,21
CONDITIONS, OR PRIVILEGES OF EMPLOYMENT, OR OTHER ADVERSE ACTION22
AGAINST AN EMPLOYEE ON THE GROUNDS THAT THE EMPLOYEE DOES NOT23
ENTER INTO A CONTRACT OR AGREEMENT DEEMED TO BE AGAINST PUBLIC24
POLICY AND UNENFORCEABLE UNDER SUBSECTION (1)(b) OF THIS SECTION.25
T
HE TAKING OF SUCH A MATERIALLY ADVERSE EMPLOYMENT -RELATED
26
ACTION AFTER AN EMPLOYEE HAS REFUSED TO ENTER INTO SUCH A27
053
-16- CONTRACT OR AGREEMENT IS PRIMA FACIE EVIDENCE OF RETALIATION .1
(b) A
NY PERSON WHO ENFORCES OR ATTEMPTS TO ENFORCE A2
PROVISION DEEMED AGAINST PUBLIC POLICY AND UNENFORCEABLE3
PURSUANT TO SUBSECTION (1)(b) OF THIS SECTION IS LIABLE FOR THE4
EMPLOYEE'S REASONABLE ATTORNEY FEES AND COSTS IN DEFENDING5
AGAINST THE ACTION.6
(c) A
N ACTION TO ENFORCE A PROVISION OF THIS SECTION MUST BE
7
BROUGHT IN THE DISTRICT COURT FOR THE DISTRICT IN WHICH THE8
EMPLOYEE IS PRIMARILY EMPLOYED .9
(3) A
SETTLEMENT AGREEMENT BETWEEN AN EMPLOYER THAT IS
10
A LOCAL GOVERNMENT OR A DEPARTMENT , INSTITUTION, OR AGENCY OF11
A LOCAL GOVERNMENT AND AN EMPLOYEE OF THE LOCAL GOVERNMENT12
OR THE DEPARTMENT , INSTITUTION, OR AGENCY OF THE LOCAL13
GOVERNMENT MUST BE SIGNED BY BOTH THE EMPLOYER AND THE14
EMPLOYEE.15
(4) A
S USED IN THIS SECTION:
16
(a) "C
ONDITION OF EMPLOYMENT " MEANS AN
17
EMPLOYMENT-RELATED POLICY , PRACTICE, REQUIREMENT , OR18
RESTRICTION DICTATED BY AN EMPLOYER THAT AN INDIVIDUAL MUST19
AGREE TO ABIDE BY IN ORDER TO BE HIRED BY OR RETAIN EMPLOYMENT20
WITH THE EMPLOYER.21
(b) "E
MPLOYEE" MEANS AN APPLICANT FOR EMPLOYMENT WITH OR
22
CURRENT OR PAST EMPLOYEE OF A LOCAL GOVERNMENT OR A23
DEPARTMENT, INSTITUTION, OR AGENCY OF A LOCAL GOVERNMENT .24
(c) "L
OCAL GOVERNMENT" MEANS A
STATUTORY OR HOME RULE25
COUNTY, A CITY AND COUNTY , OR A STATUTORY OR HOME RULE26
MUNICIPALITY.27
053
-17- SECTION 5. Act subject to petition - effective date -1
applicability. (1) This act takes effect at 12:01 a.m. on the day following2
the expiration of the ninety-day period after final adjournment of the3
general assembly; except that, if a referendum petition is filed pursuant4
to section 1 (3) of article V of the state constitution against this act or an5
item, section, or part of this act within such period, then the act, item,6
section, or part will not take effect unless approved by the people at the7
general election to be held in November 2024 and, in such case, will take8
effect on the date of the official declaration of the vote thereon by the9
governor.10
(2) This act applies to contracts and agreements entered into,11
renewed, modified, or amended on or after the applicable effective date12
of this act.13
053
-18-