Federal & State Regulations | Employment contracts - Colorado

Summary of differences between federal and state regulations

Federal law generally does not regulate employment contracts between employers and employees with one exception: contracts that require the joining or refraining from joining of a labor union as a condition of employment. On the federal level, these contracts are governed by the National Labor Relations Act. States may have a corresponding provision and may also have additional provisions regarding employment contracts.

Colorado law has a similar provision to federal regarding labor union membership. It also has additional provisions.

Union membership

It is against public policy for an employer to contract with an employee or prospective employee to either become or refrain from becoming a member of a union as a condition of employment. §8-3-119

Waiver of rights

Colorado law provides that an employee can not by oral or written agreement, waive or modify any of his or her rights under the Wage Claim Act. Any agreement made in violation is null and void. §8-4-121

Non-compete agreement

Any agreement not to compete which restricts the right of a person to receive compensation for work performed for an employer is invalid, except for certain circumstances: contracts for the sale of a business, any contract to protect trade secrets, contracts to recover expenses for training received through the employer by employees who have worked for the employer less than two years, executive and management personnel, and non-compete provisions among physicians. §8-2-113