Colorado voids an employee non-compete by default under C.R.S. § 8-2-113(2)(a), with a narrow exception for workers who earn above an annually adjusted highly-compensated-worker threshold — $130,014/yr for 2026 — where the covenant is no broader than necessary to protect trade secrets.
A 2025 amendment, SB 25-083, bans non-competes and customer non-solicits outright for physicians, advanced practice registered nurses, and dentists regardless of income, but does not name veterinarians.
A Colorado veterinarian's covenant is therefore judged under the general threshold exception, not the healthcare-specific ban.
The statute was last amended effective August 6, 2025, with new dollar thresholds effective January 1, 2026.
Mechanics, not a verdict on your contract
At a glance
Permitted only within statutory limits
State statute — C.R.S. § 8-2-113(2)(a)-(b) (general void-with-exceptions rule and highly-compensated-worker exception), with the SB 25-083 (2025) physician/APRN/dentist non-compete ban at (2)(b) as amended.
Healthcare statute reaches veterinarians: No — the healthcare statute's own definitions leave veterinarians out.
Section 8-2-113(2)(a) voids a covenant not to compete that restricts an individual's right to receive compensation for labor, except as (2)(b), (2)(d), and (3) provide. For a veterinarian employed by a practice, that means the covenant is void unless the highly-compensated-worker exception in (2)(b) applies; a covenant tied to buying or selling a practice interest is judged separately, under the sale-of-business exception in (3)(c).
No. SB 25-083 (2025) added a physician/APRN/dentist non-compete and non-solicitation ban to (2)(b) and (2)(d) that applies regardless of income, but it names only "the practice of medicine, the practice of advanced practice registered nursing, or the practice of dentistry." Veterinarians are not named anywhere in the statute.
General highly-compensated-worker threshold: $130,014/yr for 2026 (up from $127,091 in 2025). Non-solicitation threshold: 60% of that, $78,008.40/yr for 2026. Both set annually by CDLE's PAY CALC Order; the statute's own text does not state a dollar figure.
No fixed duration or mileage cap for the (2)(b) highly-compensated-worker or (2)(d) non-solicitation exceptions — those turn on income and on the covenant being no broader than reasonably necessary to protect trade secrets. The sale-of-business exception at (3)(c) is different: since SB 25-083 (2025), a minority owner who received their ownership share as compensation for services faces a duration cap equal to the total sale consideration they received divided by their average annualized cash compensation from the business over whichever is shorter, the preceding two years or their period of affiliation with the business.
Not stated in the sources read.
Section 8-2-113(3)(c) carves out a covenant not to compete related to the purchase and sale of a business, a direct or indirect ownership share in a business, or all or substantially all of a business's assets, that restricts competition by an owner of an interest in the business. SB 25-083 (2025) added a duration cap to this exception for a minority owner who received their ownership share as equity compensation or otherwise in connection with services rendered: the covenant's duration in years cannot exceed the total sale consideration the individual received divided by their average annualized cash compensation from the business over whichever is shorter, the preceding two years or their period of affiliation with the business.
Section 8-2-113(2)(d) exempts a customer non-solicitation covenant from the general void rule only for an individual earning at least 60% of the highly-compensated-worker threshold ($78,008.40/yr for 2026) and only where the covenant is no broader than reasonably necessary to protect trade secrets. As with (2)(b), the physician/APRN/dentist non-solicitation ban in (2)(d) does not name veterinarians.
SB 25-083, effective August 6, 2025 and applicable to covenants entered into or renewed on or after that date; the 2026 dollar thresholds took effect January 1, 2026.
“Except as provided in subsections (2)(b), (2)(d), and (3) of this section, a covenant not to compete that restricts the right of an individual to receive compensation for performance of labor is void.”
Section 8-2-113(2)(a) starts from a void-by-default position: a covenant not to compete that restricts an individual's right to be paid for labor is void, except as (2)(b), (2)(d), and (3) provide.
For a veterinarian, that means an employer cannot simply write a covenant into an associate agreement and expect it to hold — the covenant only survives if it fits one of the statute's named exceptions.
The statute also carries a notice duty: any otherwise-permissible covenant is void unless the employer gives written notice before a prospective worker accepts an offer, or — for a current worker — at least 14 days before whichever comes first, the covenant's own effective date or the effective date of any additional compensation or other change in employment terms that provides the consideration for it (§ 8-2-113(4)(a)).
That notice must come in a document separate from the rest of the agreement, stated in clear and conspicuous terms, and signed by the worker (§ 8-2-113(4)(b)).
Reading an offer, a veterinarian's first question under this statute is which exception, if any, the employer is relying on.
“Except as provided in subsections (2)(b), (2)(d), and (3) of this section, a covenant not to compete that restricts the right of an individual to receive compensation for performance of labor is void.”
SB 25-083 (2025) added a carve-out inside the highly-compensated-worker exception itself: a covenant that restricts "the practice of medicine, the practice of advanced practice registered nursing, or the practice of dentistry" is void regardless of how much the worker earns.
That list names three practice types (the statute's own "practice of medicine" term is itself defined to include practice as a physician assistant), and veterinary medicine is not one of them.
A veterinarian's covenant does not get the benefit of that income-blind ban; instead, it falls to the ordinary highly-compensated-worker exception that (2)(b) sets up for every other worker.
A headline describing Colorado as banning non-competes for healthcare workers is describing physicians (including PAs), APRNs, and dentists specifically, not a veterinarian's contract.
“Except for a covenant not to compete that restricts the practice of medicine, the practice of advanced practice registered nursing, or the practice of dentistry in this state, this subsection (2) does not apply to a covenant not to compete governing an individual who, at the time the covenant not to compete is entered into and at the time it is enforced, earns an amount of annualized cash compensation equivalent to or greater than the threshold amount for highly compensated workers, if the covenant not to compete is for the protection of trade secrets and is no broader than is reasonably necessary to protect the employer's legitimate interest in protecting trade secrets.”
Because the healthcare-specific ban does not reach veterinarians, the (2)(b) highly-compensated-worker exception is the route by which an employee veterinarian's non-compete — one tied to ordinary practice work rather than to buying or selling an ownership interest — can escape being void. (A covenant tied to a practice sale or ownership stake is judged separately, under the sale-of-business exception in (3)(c).) That exception has two separate conditions, not one: the veterinarian's annualized cash compensation must meet or exceed the highly-compensated-worker threshold — $130,014/yr for 2026, up from $127,091 in 2025 — both when the covenant is signed and when it is enforced, and the covenant itself must be for the protection of trade secrets and no broader than reasonably necessary to protect that interest.
An associate earning below the threshold has a void covenant regardless of what it says; an associate above the threshold still has to clear the trade-secrets/no-broader-than-necessary condition.
The dollar figure itself is set annually by the Colorado Department of Labor and Employment's PAY CALC Order, not stated as a number in the statute's own text.
“if the covenant not to compete is for the protection of trade secrets and is no broader than is reasonably necessary to protect the employer's legitimate interest in protecting trade secrets.”
Section 8-2-113(3)(c) exempts a covenant tied to the purchase and sale of a business, an ownership share, or substantially all of a business's assets, where it restricts competition by an owner of an interest in the business.
That is a different exception from the highly-compensated-worker route in (2)(b) — it does not depend on income or trade secrets, and it applies to the owner-seller, not an employee.
SB 25-083 (2025) added a limit: for a minority owner who received their ownership share as compensation for services, the covenant's duration in years cannot exceed the total sale consideration received divided by their average annualized cash compensation from the business over whichever is shorter, the preceding two years or their period of affiliation with the business.
A veterinarian buying into or selling out of a Colorado practice is negotiating a covenant under this exception, not the employee non-compete rule.
“A covenant not to compete related to the purchase and sale of a business, a direct or indirect ownership share in a business, or all or substantially all of the assets of a business that restricts competition by an owner of an interest in the business...”
Colorado treats a customer non-solicitation covenant separately from a full non-compete.
Section 8-2-113(2)(d) exempts a non-solicitation covenant from the general void rule only for an individual earning at least 60% of the highly-compensated-worker threshold — $78,008.40/yr for 2026 — and only where the covenant is no broader than reasonably necessary to protect trade secrets.
As with the full non-compete exception, (2)(d) carries the same physician/APRN/dentist carve-out that makes the ban income-blind for those three professions and leaves veterinarians under the 60%-threshold test.
A relief veterinarian or associate reading a client non-solicitation clause should check income against this lower line, not the full non-compete threshold.
“Except for a covenant not to compete that restricts the practice of medicine, the practice of advanced practice registered nursing, or the practice of dentistry in this state, this subsection (2) does not apply to a covenant not to solicit customers governing an individual who... earns an amount of annualized cash compensation equivalent to or greater than sixty percent of the threshold amount for highly compensated workers, if the nonsolicitation covenant is no broader than reasonably necessary to protect the employer's legitimate interest in protecting trade secrets.”
SB 25-083 took effect August 6, 2025 and applies to covenants entered into or renewed on or after that date — it does not reach an earlier covenant that is neither entered into nor renewed after the effective date.
It added the physician/APRN/dentist non-compete and non-solicitation ban to (2)(b) and (2)(d); added a broader "health-care provider" definition — covering the practice of medicine (itself defined to include physician assistants), advanced practice registered nursing, certified midwifery, and dentistry — for a separate patient-notification right at (5.5); and amended the sale-of-business exception at (3)(c) to add a duration cap for a minority owner who received their ownership share as compensation for services.
It did not change the underlying void-by-default structure of (2)(a) or the highly-compensated-worker exception's trade-secrets condition, and it did not add veterinarians to any exception.
The 2026 dollar thresholds ($130,014 general, $78,008.40 non-solicitation) took effect separately, on January 1, 2026, under the statute's existing annual-adjustment mechanism.
The research behind this page reads the statute's text directly; it does not identify a Colorado court decision addressing how a judge treats a covenant found to be broader than the trade-secrets condition allows — whether the covenant is struck as written, narrowed, or rewritten.
That gap matters most for a veterinarian whose covenant clears the income threshold but whose scope is disputed.
Section 8-2-113(3)(a) also exempts a separate category this page does not cover in depth: a covenant recovering the expense of educating and training a worker, capped at a decreasing amount over two years and subject to federal wage-and-hour law.
These gaps are left blank here rather than filled from another state's rule — take them to a Colorado attorney with the whole agreement in hand.
Have the agreement itself reviewed
The reasonableness test, what a radius is measured from, the access-to-care argument, and the difference between a non-compete and a non-solicitation clause are covered in the national guide to veterinary non-competes. This page covers only what is specific to Colorado.
No. SB 25-083 (2025) added an income-blind non-compete and non-solicitation ban to C.R.S. § 8-2-113(2)(b) and (2)(d), but it names only the practice of medicine, advanced practice registered nursing, and dentistry.
Veterinarians are not named anywhere in the statute, so a veterinarian's covenant is judged under the ordinary highly-compensated-worker exception instead.
Have a Colorado attorney who handles veterinary employment contracts read your agreement against that exception.
For an employee non-compete tied to ordinary practice work, yes: under § 8-2-113(2)(b), that covenant is void for anyone earning below the highly-compensated-worker threshold — $130,014/yr for 2026.
Above that threshold, the covenant must also be for the protection of trade secrets and no broader than reasonably necessary to protect that interest.
This income test does not apply to a covenant tied to buying or selling a practice interest, which is judged separately under the sale-of-business exception; a Colorado employment attorney can tell you which test applies to your agreement.
Yes, it is evaluated under a different exception.
Section 8-2-113(3)(c) exempts a covenant tied to a business purchase, sale, or ownership share, where it restricts an owner of an interest in the business — separate from the employee highly-compensated-worker exception.
SB 25-083 (2025) added a duration cap to it for a minority owner who received their ownership share as compensation for services, tied to sale consideration and cash compensation received.
A buy-in or buy-out covenant should be reviewed with the purchase agreement by a Colorado attorney who handles veterinary practice transactions.
No, it has its own, lower income line.
Section 8-2-113(2)(d) exempts a customer non-solicitation covenant from the void rule at 60% of the highly-compensated-worker threshold — $78,008.40/yr for 2026 — rather than the full threshold, and it must still be no broader than reasonably necessary to protect trade secrets.
An associate whose income falls between the two thresholds may be bound by a non-solicitation clause even where a full non-compete would be void.
A Colorado attorney can tell you which threshold applies to your specific clause.
The most recent change recorded for this page is SB 25-083, effective August 6, 2025 and applicable to covenants entered into or renewed on or after that date.
It added the physician/APRN/dentist ban, a patient-notification right, and a duration cap on the sale-of-business exception for certain minority owners.
The 2026 dollar thresholds took effect separately on January 1, 2026 under the statute's existing annual-adjustment mechanism.
This page was last verified in September 2026; Colorado's thresholds move every year, so confirm the current figures and ask an attorney before relying on this page.
Sources
Sourced from Colorado’s own statute or leading court decisions (see the citations above). Verified September 2026; the governing provision was last amended SB 25-083, effective August 6, 2025 and applicable to covenants entered into or renewed on or after that date; the 2026 dollar thresholds took effect January 1, 2026. This page is general information, not legal advice.