New legislation out of the Colorado state Senate takes effect Aug. 6, 2026, and will place significant restrictions on noncompete agreements for healthcare providers, ColoradoBiz reported Aug. 4.
Here are four things to know about the new restrictions:
1. The legislation eliminates nearly all circumstances under which restrictive covenants can be used for healthcare providers — including physicians, physician assistants, advanced practice registered nurses, certified midwives and dentists.
2. This marks a change from the statute’s previous definition of healthcare provider, which applied only to physicians. Beginning Aug. 6, 2026, any restrictive covenant will be void if it prohibits or restricts a healthcare provider from informing patients that they will continue practicing medicine at a new location, sharing their new contact information, or explaining that the patient has the right to choose their provider.
3. The legislation also eliminates a provision that previously allowed companies to recover damages from physicians who left a practice and competed.
4. The restrictions do not apply to noncompete agreements established before the effective date.
