Non-compete laws · CO

Colorado physician non-compete law

As of October 21, 2026, Colorado law generally makes non-compete agreements void or unenforceable for physicians, with exceptions.

Generally banned for physiciansChecked 2026-10-21

For covenants entered or renewed on or after Aug. 6, 2025, noncompetes and customer non-solicits restricting the practice of medicine (including PAs), advanced practice nursing or dentistry are void, with no high-earner exception. Owner and sale-of-business covenants remain allowed, with limits. (C.R.S. § 8-2-113 (2024 compilation, before SB25-083))

Changed recently. The current rule took effect 2025-08-06. Pages and guides written before then may describe the old rule.

Limits in the law

  • Pay threshold: Not available to physicians: the highly-compensated-worker exceptions for trade-secret noncompetes (C.R.S. 8-2-113(2)(b)) and customer non-solicits (2)(d) exclude covenants restricting the practice of medicine, APRN practice, or dentistry
  • A covenant counts as restricting practice if it bars or materially restricts telling prior patients about the provider's continuing practice, new contact information, or the patient's right to choose a provider (8-2-113(5.5))
  • Sale-of-business covenant for a minority owner who received the ownership share as equity compensation or for services: duration in years may not exceed total sale consideration divided by average annualized cash compensation from the business (prior two years, or the affiliation period if shorter)
  • Any otherwise-permitted noncompete is void without separate, signed advance notice to the worker (8-2-113(4))
  • Employers that present or try to enforce void covenants face actual damages and a $5,000 per-worker penalty; the Attorney General may enforce (8-2-113(8)-(9))

Who it covers

All workers under the general rule. Physician-specific limits cover covenants restricting the practice of medicine (defined to include physician assistants), APRN practice, or dentistry. The 'health-care provider' definition used in the patient-notice rule also lists certified midwives.

Exceptions

  • Covenant related to the purchase and sale of a business, a direct or indirect ownership share, or all or substantially all assets, restricting an owner (duration cap for equity-compensated minority owners)
  • Reasonable confidentiality or trade-secret provisions that do not bar use of general training, knowledge, skill or experience, or public information
  • Recovery of the reasonable cost of distinct (non-ordinary) training, declining proportionately over two years
  • Repayment of a scholarship provided to an individual in an apprenticeship

Effective date

The current rule took effect 2025-08-06.

Notes

SB25-083 applies to covenants entered or renewed on or after Aug. 6, 2025; earlier physician covenants follow the prior statute, which voided practice restrictions but allowed reasonable damages clauses. Clinicians may tell prior patients about their continuing practice, contact information and right to choose a provider. Colorado separately voids most noncompetes for other workers below a high-earner threshold.

Sources

Questions to ask about your contract

  • Is the radius measured from your practice site or from every location the employer owns?
  • Does the restriction apply if the employer terminates you without cause?
  • Is there a buyout, and how is the amount calculated?
  • What does your state's law say about physician non-competes?
Check a contract against Colorado lawAll states

Not legal advice. This page summarizes the law as written. Whether a particular agreement is enforceable depends on its wording, when it was signed and court decisions. Ask an attorney licensed in Colorado.