Colorado has some of the toughest post-employment restrictive agreement law in the country, but a new bill would make such employment contractual clauses much harder to write and enforce.
The Chamber has been working to amend House Bill 1216, which adopts recommendations from the Uniform Law Commission regarding nondisclosure agreements, noncompete employment clauses and other post-employment clauses in employment contracts. The bill is sponsored by Rep. Kerry Tipper (D-Jefferson) and Sen. Jeff Bridges (D-Arapahoe).
Current Colorado law effectively balances the power between employees and employers when an employment relationship concludes. The provisions established in HB 1216 might benefit states with looser employment regulation, but they are not a good fit for a state with a well-established system in place, such as Colorado.
We know that employment restrictive agreements serve an important purpose in our business community. Our advanced industry sector relies on employment restrictive agreements to protect proprietary information and safeguard against talent poaching. In its current form, this bill increases the risk associated with enforcing an employment restrictive agreement and would lead to additional litigation.
The Chamber is concerned that these policies would make restrictive employment agreements untenable in Colorado, and that it would further disadvantage our state compared to the business-friendly states with which we compete for businesses and talent.
We are working with bill sponsors to ensure that Colorado workers have appropriate employment protection without jeopardizing business across the state. At the request of the bill sponsors, the Chamber has mobilized our Legal Advisory Committee to provide substantive feedback that will protect the balance of our state’s current system. We appreciate all the engagement we have experienced on this issue. However, unless amended, the Chamber stands in opposition to House Bill 1216.
Here are the bills we took a stance on this week.
Support
- Senate Bill 129 requires the air quality control commission to include in a notice of proposed rulemaking a description of who the proposed rule will affect, including businesses. The Chamber has concerns over the increasing prevalence of rulemaking to determine the implementation and impact of legislation, and it supports the transparency mechanisms created by this bill.
Oppose
- Senate Bill 138 contains multiple provisions related to greenhouse gas emissions. The bill requires insurance companies to assemble an annual report that includes a climate risk assessment for the company’s investment portfolio, phases out the use of small off-road engines, authorizes the Colorado agriculture value-added development board to provide financing for agricultural research on the use of “agrivoltaics,” and more. While the Chamber recognizes that addressing greenhouse gas emissions is a priority for the metro area, this particular bill places an undue burden on the business community to solve this problem alone.
Neutral
- House Bill 1018 changes the date on which Energy Outreach Colorado disburses to the Department of Human Services a portion of the energy assistance system benefit charges that investor-owned electric and gas utilities collect, requires the Public Utilities Commission to adopt rules prohibiting electric and gas utilities from disconnecting a customer’s service and establishes income standards for determining a household’s eligibility for federal utility assistance. This bill is a good compromise between the rights of business and consumers; therefore, the Chamber remains neutral on this bill.
- House Bill 1112 extends the current law requiring injured employees to notify their employer within four days after occurrence to 14 days and repeals the current tolling and compensation reduction provisions. The Chamber supports legislators and stakeholders negotiating legislation that best serves Colorado employers and employees. This bill reflects a compromise between members of the business community and other stakeholders.
Read our justifications for these positions and more on our current legislation page.
Have questions or concerns about policy? Contact our Government Affairs team.