Colorado Non-Compete Statute (C.R.S. § 8-2-113) & Overbroad NDA Redline Auditor
Colorado’s restrictive covenant statute (C.R.S. § 8-2-113) imposes a $5,000 per-worker statutory penalty plus attorney fees on employers who even *present* an unlawful non-compete! Under C.R.S. § 8-2-113, non-competes are void unless you earn at or above the Colorado "Highly Compensated Worker" threshold (~$123,750+, adjusted annually) AND the employer delivers a separate, standalone signed statutory notice before you accept the offer. Even more importantly, § 8-2-113(2)(b) voids Confidentiality/NDA clauses that prohibit using "general training, knowledge, skill, or experience" gained on the job!
VP Terminated 6 Weeks Before Acquisition Lost $290,000 in Unvested Equity & Severance
A VP joined a growth-stage company under an offer letter with no Double-Trigger Change-in-Control acceleration and a broad subjective "Cause" definition. Six weeks before the company was acquired, the board eliminated the VP’s role—wiping out 100% of unvested equity and demanding repayment of the $40,000 sign-on bonus.
RedlineCore™ narrows "Cause" to willful felony/breach with 30-day cure, inserts a Good Reason trigger, and adds 100% Double-Trigger equity acceleration including a 90-day pre-closing lookback.
Check Your Full Contract PDF for Cross-Section Overrides (Free 60s Scan)
Fixing one clause alone often fails when a buried definition, exhibit, or survival clause elsewhere in your Commercial Property & Business Loss neutralizes your protection. Drop your PDF or Word (.docx) below for an instant, 100% anonymous cross-section audit.
“Colorado C.R.S. § 8-2-113 Statutory Compliance: (a) Pursuant to C.R.S. § 8-2-113(2)(b), "Confidential Information" strictly excludes information that arises from Employee’s general training, knowledge, skill, or experience, whether gained on the job or otherwise; (b) any non-compete or customer non-solicitation is void unless Employee’s compensation meets the statutory
What to Say to the Commercial Lines Carrier / E&S Insurer
"Under Colorado C.R.S. § 8-2-113(2)(b) and (6), our agreement must be governed by Colorado law and explicitly carve out general training, knowledge, skill, and experience gained on the job from the Confidentiality definition."
Why they drafted it this way: Employers try to bypass Colorado’s non-compete ban by writing an ultra-broad Confidentiality/NDA clause that treats your general industry know-how as a "trade secret."
Mandatory Audit Checklist Points
- Enforce C.R.S. § 8-2-113(2)(b): Carve out general training, knowledge, skill, and experience from the NDA/Confidentiality clause
- Enforce C.R.S. § 8-2-113(4): Any non-compete or customer non-solicit is void unless accompanied by a separate, standalone written notice before offer acceptance
- Enforce C.R.S. § 8-2-113(6): Require Colorado law and Colorado venue for any employee residing or working in Colorado
Paste Your Colorado CRS 8-2-113 non-compete confidentiality redline Section or Upload Your Full Commercial Property & Business Loss (.pdf / .docx)
Check if your draft has a hidden loophole or cross-section override. Click ⚡ Preview Sample Audit (Instant) to see a live demo in 0.2s, or upload your own PDF / Word (.docx) contract below:
Frequently Asked Questions
Why are so many Colorado non-compete agreements automatically void under C.R.S. § 8-2-113(4)?
Because C.R.S. § 8-2-113(4) requires the employer to provide a *separate written notice* (in a standalone document, not just buried inside the offer letter) identifying the exact paragraph of the non-compete before the prospective worker accepts the offer of employment. If the employer forgets that separate notice, the non-compete is 100% void!
How do I redline Colorado CRS 8-2-113 non-compete confidentiality redline traps in my Commercial Property & Business Loss anonymously without creating an account?
Upload your Commercial Property & Business Loss PDF or Word (.docx) draft to ClaimXray.com to run the "Colorado Non-Compete Statute (C.R.S. § 8-2-113) & Overbroad NDA Redline Auditor" defense cartridge 100% anonymously—with zero account registration, zero email login, and stateless in-memory processing. RedlineCore™ 4.0 flags Colorado CRS 8-2-113 non-compete confidentiality redline exposure (typically $5,000 statutory penalty per violation + full career & skill mobility; documented unredlined loss: $290,000 in forfeited equity & clawed-back sign-on bonus), checks for cross-section overrides, and exports a ready-to-send Microsoft Word (.docx) Track-Changes file.
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