Dental Non-Compete Laws in Colorado: What Dentists Need to Know (2026)
Dental Non-Compete Laws in Colorado: What Dentists Need to Know (2026)
> The short answer: Colorado SB 25-083 took effect August 6, 2025 and makes non-competes that restrict the practice of dentistry void — regardless of what you earn and regardless of any trade-secret justification. Customer non-solicitation covenants are void too. Colorado is now one of the strongest states in the country for dentists.
---
With the FTC's federal non-compete ban abandoned in September 2025, Colorado law is now the only thing deciding whether your clause sticks. Full FTC story →
Colorado made a significant policy shift in 2022. The state rewrote C.R.S. § 8-2-113, its non-compete statute, with the explicit goal of limiting which workers employers can realistically bind to these agreements. The reform was aimed broadly at preventing employers from using non-competes to trap lower-wage workers. But the way the thresholds were drawn has real implications for dental associates, and the picture is not entirely clear-cut.
Here is the core of what changed: non-competes in Colorado are now only enforceable for workers who earn above a certain compensation threshold, and only when the restriction serves the purpose of protecting trade secrets. If you do not earn above the threshold, the clause is void. If it is not protecting a trade secret, it is void. Your employer imposing a void clause on you is now itself a violation of Colorado law.
---
What C.R.S. § 8-2-113 Now Requires
Under the 2022 reform, for a non-compete agreement to be enforceable against a Colorado worker, the employer must show:
1. Compensation threshold. The employee must earn above 60% of the threshold amount for a highly compensated worker, as defined by the Colorado Department of Labor, adjusted annually. This threshold is updated each year. For context, it was in the range of approximately $123,000 annualized when the reform took effect. Check the current-year figure published by the state.
2. Trade secret protection. The non-compete must be for the protection of trade secrets. This is more demanding than the general "legitimate business interest" standard used in most other states. A patient list may qualify as a trade secret if it is genuinely confidential and the employer has taken steps to protect it. General skills and patient relationships developed in the ordinary course of clinical practice are a harder sell as trade secrets.
3. No greater scope than necessary. Even if both prior conditions are met, the restriction must be no broader in time, geography, and scope than is reasonably necessary to protect the trade secret at issue.
Penalty for imposing void agreements. Employers who ask workers to sign non-competes that do not meet the statutory requirements can face civil penalties. Workers can also seek a declaratory judgment that the clause is void and recover attorney's fees.
---
The 2025 change that matters most: SB 25-083
If you read only one section, read this one. Colorado's rules for dentists changed substantially in 2025, and most of the guidance still circulating online describes the older framework.
Senate Bill 25-083 took effect August 6, 2025 and rewrote the health care provisions of C.R.S. § 8-2-113. Under it, a covenant not to compete that restricts the practice of dentistry is void. So is a customer non-solicitation covenant that does the same thing. Dentists are named in the statute alongside physicians, advanced practice registered nurses and certified midwives — this is not a case of dentistry being folded in by implication.
Two details make it stronger than it first sounds:
- Your income no longer matters. The 2022 version of the statute turned on a compensation threshold, which is why so much older writing tells dental associates they sit in a gray zone. For the practice of dentistry, that analysis is gone. The covenant is void regardless of what you earn.
- "We're protecting trade secrets" no longer saves it. That was the main justification employers relied on to enforce against higher earners. The statute removes it for dentistry.
SB 25-083 also protects your ability to take your patients' goodwill with you when you go. A restrictive covenant is void if it stops you from telling patients you're continuing to practice somewhere else, from giving them your new contact information, or from explaining that they can choose their own provider. And liquidated damages provisions tied to competition are no longer enforceable, which closes the workaround of pricing your departure instead of forbidding it.
What it does not change. Non-competes connected to the sale of a business survive. If you buy into a practice and later sell your interest, the restriction you sign as a seller is a different legal animal from the one in an associate employment agreement.
One open question worth asking an attorney. Whether SB 25-083 reaches an agreement you signed before August 6, 2025 is not something the publicly available summaries settle cleanly, and Virginia's comparable 2026 law was expressly not retroactive. If your contract predates August 2025, treat the answer as unresolved rather than assuming it either way — a Colorado employment attorney can read the applicability language against your specific agreement.
General information about how the statute is written, not legal advice about your contract.
Where Dental Associates Fall in the Compensation Analysis
The compensation analysis below is the framework that governed before August 2025. For the practice of dentistry it has been superseded by SB 25-083, but it remains the relevant history — and may still matter if your agreement predates the change.
This is where things get nuanced. Dental associates in Colorado vary significantly in their compensation. Some associates — particularly at DSO practices with high production volumes or those earning a significant percentage of collections — comfortably exceed the compensation threshold. Others, particularly new graduates in their first year or part-time associates, may fall below it.
If your total compensation falls below the applicable threshold, your non-compete is void under Colorado law. Your employer imposing it on you is itself a violation. That's a meaningful protection that many dentists don't know they have.
If you earn above the threshold, you are in the zone where enforcement is possible. But the employer still needs to satisfy the trade secret requirement, which is a genuine hurdle in the dental context. The argument that your clinical skills and patient relationships constitute trade secrets has real limits. Confidential practice management systems, proprietary patient acquisition data, or documented specialty protocols might qualify. Generic patient care relationships probably do not.
The honest answer is that the enforceability of a Colorado dental non-compete depends significantly on your specific compensation level and on how well your employer can articulate what trade secret they are protecting.
---
What to Watch for in Your Contract
Whether the contract acknowledges the 2022 law. Contracts drafted before 2022 or by out-of-state counsel may not comply with the new statutory requirements. A clause that does not reference the trade secret basis for the restriction or that does not include the required notice provisions may be void on procedural grounds, separate from the substantive threshold question.
Notice requirements. The 2022 reform requires employers to provide advance notice of a non-compete requirement before a job offer is accepted or before a material change in employment conditions. If you were handed a non-compete to sign on your first day without prior disclosure, that procedural failure may affect enforceability.
What the employer claims as a trade secret. If your contract includes a non-compete, it should ideally specify what trade secret it is protecting. Vague language about "confidential information" is weaker than specific identification of protected information. If the agreement does not articulate this clearly, that is a problem for the employer's case.
Compensation structure and total earnings. Because the threshold is determined annually and based on total compensation, understand how your pay is structured. Base salary plus production bonus plus any other compensation elements all count. If your total package puts you near the threshold, the calculation matters a lot.
---
What to Do If You Have a Non-Compete in Colorado
Start by determining your total annual compensation and comparing it to the current-year threshold published by the Colorado Department of Labor. If you are below the threshold, you may already be free of the clause, and your employer may be on the wrong side of the law for having imposed it.
If you earn above the threshold, the next question is whether the trade secret basis is genuinely satisfied. This is a legal analysis that depends on your specific facts. An employment attorney in Colorado who has followed the 2022 reform is the right resource here.
If you are reviewing a new contract before signing, verify that it complies with the 2022 requirements: proper notice before acceptance, explicit trade secret justification, and compensation that meets the threshold test. A contract that skips these elements may be void from the start.
Do not sign anything without understanding where you fall on the compensation threshold. That single fact determines whether the clause has any legal basis at all.
---
Your Non-Compete Is One Piece of a Larger Picture
Your non-compete is one piece of your contract. DentalUnlock's free AI analysis grades your entire agreement on 8 dimensions, including non-compete scope, in under 60 seconds.
---
Related Reading
- Dental Non-Compete Clauses: Is Yours Actually Enforceable? (National Guide)
- Dental Associate Contract Red Flags
- Dental Non-Compete Laws in California
- Dental Non-Compete Laws in Arizona
- Dental Non-Compete Laws in Wyoming
---
This page is for general informational purposes only and does not constitute legal advice. Non-compete enforceability is a complex, state-specific legal question. The information here reflects our understanding of current law as of May 2026. Consult with a qualified attorney licensed in Colorado for advice specific to your situation.
Published by the DentalUnlock Team. Last updated May 2026.
Ready to grade your contract?
Upload your dental associate agreement and get an AI-powered analysis in minutes.
Grade My Contract — Free