Source: Littler
Colorado’s Senate Bill 25-083, effective August 6, 2025, significantly limits the enforceability of noncompete and nonsolicit agreements for healthcare providers and minority business owners. The bill amends C.R.S. § 8-2-113 to eliminate exceptions that previously allowed restrictive covenants for physicians, now extending protections to dentists, advanced-practice nurses, and midwives. Noncompetes and patient/customer nonsolicits involving these healthcare providers are generally void, and providers cannot be restricted from communicating with patients about continued care or contact information. However, the law still permits certain covenants unrelated to clinical practice, such as those for executives or protecting trade secrets.
For minority-interest business sellers (less than 50% ownership), SB 83 sets a new enforceability standard: any noncompete must be justified by the compensation received from the sale. The permissible duration of such covenants is capped based on a formula comparing sale proceeds to prior earnings, potentially limiting restrictions to just months. The law seeks to balance business protection with individual rights.