Amendments for HB22-1317

House Journal, April 8
44 HB22-1317 be amended as follows, and as so amended, be referred to
45 the Committee of the Whole with favorable
46 recommendation:
47
48 Amend printed bill, page 2, line 4 strike "employee" and substitute
49 "worker".
50
51 Page 3, line 3, strike "(I)".
52
53 Page 3, line 5, strike "EARNING" and substitute "WHO, AT BOTH THE TIME
54 THE COVENANT NOT TO COMPETE IS ENTERED INTO AND AT THE TIME THE
55 COVENANT IS ENFORCED, EARNS".
1 Page 3, strike lines 7 through 13 and substitute "COVENANT NOT TO
2 COMPETE IS FOR THE PROTECTION OF TRADE SECRETS AND IS NO BROADER
3 THAN IS REASONABLY NECESSARY TO PROTECT THE EMPLOYER'S
4 LEGITIMATE INTEREST IN PROTECTING TRADE SECRETS.
5 (a) Any contract for the purchase and sale of a business or the
6 assets of a business;
7 (b) Any contract for the protection of trade secrets;
8 (c) AS USED IN SUBSECTION (2)(b) OF THIS SECTION:
9 (I) "CASH COMPENSATION" MEANS THE COMPENSATION,
10 INCLUDING EARNED SALARY, EARNED BONUSES, EARNED COMMISSIONS, OR
11 ANY OTHER FORM OF TAXABLE COMPENSATION, REFLECTED AS WAGES,
12 TIPS, AND OTHER COMPENSATION ON THE WORKER'S IRS FORM W-2 OR
13 1099 PLUS ANY ELECTIVE DEFERRALS NOT REFLECTED AS WAGES, TIPS,
14 AND OTHER COMPENSATION ON THE WORKER'S FEDERAL FORM W-2,
15 INCLUDING EMPLOYEE CONTRIBUTIONS TO A 401(k) PLAN, 403(b) PLAN,
16 FLEXIBLE SPENDING ACCOUNT, OR HEALTH SAVINGS ACCOUNT, OR
17 COMMUTER BENEFIT-RELATED DEDUCTIONS OR THE AMOUNT OF
18 COMPENSATION A WORKER WOULD HAVE EARNED, BUT FOR A LEAVE OF
19 ABSENCE TAKEN VOLUNTARILY BY THE WORKER.
20 (II) "THRESHOLD AMOUNT".
21
22 Page 4, strike lines 4 through 6 and substitute "SERVED AN EMPLOYER FOR
23 A PERIOD OF LESS THAN TWO YEARS, WHERE THE TRAINING IS DISTINCT
24 FROM NORMAL, ON-THE-JOB TRAINING, THE EMPLOYER'S RECOVERY IS
25 LIMITED TO THE REASONABLE COSTS OF SUCH TRAINING AND IS PRORATED
26 OVER THE COURSE OF THE TWO YEARS SUBSEQUENT TO THE TRAINING, AND
27 THE EMPLOYER RECOVERING FOR THE COSTS OF THE TRAINING WOULD NOT
201 28 VIOLATE THE "FAIR LABOR STANDARDS ACT OF 1938", 29 U.S.C. SEC.
29 ET SEQ., OR ARTICLE 4 OF TITLE 8;".
30
31 Page 4, line 11, strike "OR".
32
33 Page 4, strike line 12 and substitute "PUBLIC, OR INFORMATION THAT A
34 WORKER OTHERWISE HAS A RIGHT TO DISCLOSE AS LEGALLY PROTECTED
35 CONDUCT;
36 (c) A COVENANT FOR THE PURCHASE AND SALE OF A BUSINESS OR
37 THE ASSETS OF A BUSINESS.".
38
39 Page 5, after line 13 insert:
40
41 "(d) AN EMPLOYER SATISFIES THE NOTICE REQUIREMENT OF THIS
42 SUBSECTION (4) WHEN THE NOTICE:
43 (I) IS PROVIDED WITH A COPY OF THE AGREEMENT CONTAINING THE
44 COVENANT NOT TO COMPETE;
45 (II) IDENTIFIES THE AGREEMENT BY NAME AND STATES THAT THE
46 AGREEMENT CONTAINS A COVENANT NOT TO COMPETE THAT COULD
47 RESTRICT THE WORKERS' OPTIONS FOR SUBSEQUENT EMPLOYMENT
48 FOLLOWING THEIR SEPARATION FROM THE EMPLOYER; AND
49 (III) DIRECTS THE WORKER TO THE SPECIFIC SECTIONS OR
50 PARAGRAPHS OF THE AGREEMENT THAT CONTAIN THE COVENANT NOT TO
51 COMPETE.".
52
53 Page 5, line 14, after "(5)" insert "(a)".
54
55 Page 5, strike lines 24 through 27.
1 Page 6, strike lines 1 through 7 and substitute:
2
3 "(b) Notwithstanding subsection (3)(a) SUBSECTION (5)(a) of this
4 section, after termination of an agreement described in subsection (3)(a)
5 SUBSECTION (5)(a) of this section, a physician may disclose his or her
6 continuing practice of medicine and new professional contact information
7 to any patient with a rare disorder, as defined in accordance with criteria
8 developed by the National Organization for Rare Disorders, Inc., or a
9 successor organization, to whom the physician was providing consultation
10 or treatment before termination of the agreement. Neither the physician
11 nor the physician's employer, if any, is liable to any party to the prior
12 agreement for damages alleged to have resulted from the disclosure or
13 from the physician's treatment of the patient after termination of the prior
14 agreement.".
15
16 Page 6, strike lines 10 through 27 and substitute:
17
18 "(6) A COVENANT NOT TO COMPETE THAT APPLIES TO A WORKER
19 WHO, AT THE TIME OF TERMINATION OF EMPLOYMENT PRIMARILY RESIDED
20 OR WORKED IN COLORADO, MAY NOT REQUIRE THE WORKER TO
21 ADJUDICATE THE ENFORCEABILITY OF THE COVENANT OUTSIDE OF
22 COLORADO. NOTWITHSTANDING ANY CONTRACTUAL PROVISION TO THE
23 CONTRARY, COLORADO LAW GOVERNS THE ENFORCEABILITY OF A
24 COVENANT NOT TO COMPETE FOR A WORKER WHO AT THE TIME OF
25 TERMINATION OF EMPLOYMENT PRIMARILY RESIDED AND WORKED IN
26 COLORADO.".
27
28 Page 7, lines 1 and 2 strike "A RESTRICTIVE EMPLOYMENT AGREEMENT
29 OR".
30
31 Page 7, line 8, strike "AN" and substitute "A".
32
33 Page 7, line 21, strike "DAMAGES" and substitute "DAMAGES,
34 REASONABLE COSTS, AND ATTORNEY FEES".
35
36 Page 8, line 6 strike "restrictive employment agreements or".
37
38 Strike "RESTRICTIVE EMPLOYMENT AGREEMENT OR" on: Page 2, line 12;
39 Page 3, lines 3 and 4, and 19; Page 4, lines 13, 15 and 16, and 17; Page
40 5, lines 8 and 12; and Page 7, lines 5 and 6 and 10.
41
42 Strike "AGREEMENT OR" on: Page 4, lines 23 and 26.
43
44 Strike "AGREEMENTS OR" on: Page 3, line 27; and Page 5, line 2.
45
46 Strike "EMPLOYEE" and substitute "WORKER" on: Page 4, lines 19 two
47 times, and 21; Page 5, lines 2, 4, 6, and 11; and Page 7, lines 4, 9 two
48 times, 14 two times, 16, 17, and 20 the second time.
49
50 Strike "EMPLOYEES" and substitute "WORKERS" on: Page 3, lines 6, 14,
51 and 15.
52
53 Strike "EMPLOYEE'S" and substitute "WORKER'S" on: Page 4, line 9; and
54 Page 5, line 5.
55
1 Strike "AN EMPLOYEE" and substitute "A WORKER" on: Page 4, line 3; and
2 Page 7, line 20.
3
4 Strike "AN EMPLOYEE" and substitute "A WORKER" on: Page 5, line 7; and
5 Page 7, line 1.
6
7

House Journal, April 13
23 Amendment No. 1, Judiciary Report, dated April 6, 2022, and placed in
24 member’s bill file; Report also printed in House Journal, April 8, 2022.
25
26 Amendment No. 2, by Representative Tipper:
27
28 Amend the Judiciary Committee Report, dated April 6, 2022, page 2,
29 strike lines 5 and 6 and substitute "LIMITED TO THE REASONABLE COSTS OF
30 THE TRAINING AND DECREASES OVER THE COURSE OF THE TWO YEARS
31 SUBSEQUENT TO THE TRAINING PROPORTIONATELY BASED ON THE NUMBER
32 OF MONTHS THAT HAVE PASSED SINCE THE COMPLETION OF THE TRAINING,
33 AND".
34
35 Amendment No. 3, by Representative Tipper:
36
37 Amend the Judiciary Committee Report, dated April 6, 2022, page 1,
38 strike lines 3 through 10 and substitute:
39
40 "Page 3 of the bill, strike lines 3 through 12 and substitute:
41
42 "(b) THIS SUBSECTION (2) DOES NOT APPLY TO A COVENANT NOT
43 TO COMPETE GOVERNING A PERSON WHO, AT THE TIME THE COVENANT NOT
44 TO COMPETE IS ENTERED INTO AND AT THE TIME IT IS ENFORCED, EARNS AN
45 AMOUNT OF ANNUALIZED CASH COMPENSATION EQUIVALENT TO OR
46 GREATER THAN THE THRESHOLD AMOUNT FOR HIGHLY COMPENSATED
47 WORKERS, IF THE COVENANT NOT TO COMPETE IS FOR THE PROTECTION OF
48 TRADE SECRETS AND IS NO BROADER THAN IS REASONABLY NECESSARY TO
49 PROTECT THE EMPLOYER'S LEGITIMATE INTEREST IN PROTECTING TRADE
50 SECRETS.".".
51
52
1 Page 1 of the report, strike lines 15 through 25 and substitute:
2
3 "(I) "ANNUALIZED CASH COMPENSATION" MEANS:
4 (A) THE AMOUNT OF THE GROSS SALARY OR WAGE AMOUNT, THE
5 FEE AMOUNT, OR THE OTHER COMPENSATION AMOUNT FOR THE FULL YEAR,
6 IF THE PERSON WAS EMPLOYED OR ENGAGED FOR A FULL YEAR.
7 (B) THE COMPENSATION THAT THE PERSON WOULD HAVE EARNED,
8 BASED ON THE WORKER'S GROSS SALARY OR WAGE AMOUNT, FEE, OR
9 OTHER COMPENSATION IF THE WORKER WAS NOT EMPLOYED OR ENGAGED
10 FOR A FULL YEAR.".
11
12 Amendment No. 4, by Representative Tipper:
13
14 Amend printed bill, page 3, after line 26 insert:
15
16 "(III) IN DETERMINING WHETHER A WORKER'S CASH
17 COMPENSATION EXCEEDS THE THRESHOLD AMOUNT, WHERE THE WORKER
18 HAS BEEN EMPLOYED FOR LESS THAN A CALENDAR YEAR, THE WORKER'S
19 CASH COMPENSATION EXCEEDS THE THRESHOLD AMOUNT IF THE WORKER
20 WOULD REASONABLY EXPECT TO EARN MORE THAN THE THRESHOLD
21 AMOUNT DURING A CALENDAR YEAR OF EMPLOYMENT.".
22
23 Amendment No. 5, by Representative Tipper:
24
25 Amend printed bill, page 7, strike lines 15 and 16 and substitute "BY THE
26 CONDUCT. THE ATTORNEY GENERAL AND ANY EMPLOYEE OR".
27
28 Page 7, after line 22 insert:
29
30 "(c) IN ANY ACTION BROUGHT UNDER THIS SUBSECTION (8), IF THE
31 EMPLOYER SHOWS THAT THE ACT OR OMISSION GIVING RISE TO SUCH
32 ACTION WAS IN GOOD FAITH AND THAT THE EMPLOYER HAD REASONABLE
33 GROUNDS FOR BELIEVING THAT THE EMPLOYER'S ACT OR OMISSION WAS
34 NOT A VIOLATION OF THIS SECTION, THE COURT MAY, IN ITS SOUND
35 DISCRETION, AWARD THE WORKER OR WORKERS NO PENALTY OR AWARD
36 A PENALTY OF ANY AMOUNT NOT TO EXCEED THE AMOUNT SPECIFIED IN
37 SUBSECTION (8)(b) OF THIS SECTION."
38
39 Amendment No. 6, by Representative Tipper:
40
41 Amend printed bill, page 2, line 5, strike "(1) (a)" and substitute
42 "(1) Legislative intent. THE GENERAL ASSEMBLY INTENDS TO PRESERVE
43 EXISTING STATE AND FEDERAL CASE LAW IN EFFECT BEFORE THE
44 EFFECTIVE DATE OF THIS ACT THAT:
45 (a) DEFINES WHAT COUNTS AS A COVENANT NOT TO COMPETE
46 THAT IS PROHIBITED BY THIS SECTION; AND
47 (b) SPECIFIES THE EXTENT TO WHICH A COVENANT NOT TO
48 COMPETE FOR THE PROTECTION OF TRADE SECRETS MUST BE TAILORED IN
49 SCOPE IN ORDER TO BE ENFORCEABLE UNDER THIS SECTION.
50 (1) (1.5) (a)".
51
52 Page 2, line 9, strike "(1)" and substitute "(1.5)".
53
54 As amended, ordered engrossed and placed on the Calendar for Third
55 Reading and Final Passage.

Senate Journal, April 27
After consideration on the merits, the Committee recommends that HB22-1317 be
amended as follows, and as so amended, be referred to the Committee of the Whole with
favorable recommendation.
Amend reengrossed bill, page 5, lines 1 and 2, strike "WHO HAS SERVED AN
EMPLOYER FOR A PERIOD OF LESS THAN TWO YEARS,".

Page 5, line 19, strike "BUSINESS." and substitute "BUSINESS; OR".

Page 5, after line 19 insert:

"(d) A PROVISION REQUIRING THE REPAYMENT OF A SCHOLARSHIP
PROVIDED TO AN INDIVIDUAL WORKING IN AN APPRENTICESHIP IF THE
INDIVIDUAL FAILS TO COMPLY WITH THE CONDITIONS OF THE SCHOLARSHIP
AGREEMENT.".

Page 8, line 20, strike "EMPLOYEE" and substitute "WORKER".


Health &
Human
Services

Senate Journal, May 2
HB22-1317 by Representative(s) Tipper; also Senator(s) Bridges--Concerning restrictive employment
agreements.

Amendment No. 1, Business, Labor & Technology Committee Amendment.
(Printed in Senate Journal, April 27, page(s) 1022 and placed in members' bill files.)

Amendment No. 2(L.017), by Senator Bridges.

Amend reengrossed bill, page 3, line 23, strike "SUBSECTION (2)(b) OF THIS
SECTION:" and substitute "THIS SUBSECTION (2):".

Page 4, after line 24 insert:

"(d) THIS SUBSECTION (2) DOES NOT APPLY TO A COVENANT NOT TO
SOLICIT CUSTOMERS GOVERNING A PERSON WHO, AT THE TIME THE COVENANT
IS ENTERED INTO AND AT THE TIME IT IS ENFORCED, 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.".

As amended, ordered revised and placed on the calendar for third reading and final
passage.