Non compete

UPDATED: Mar 25, 2019

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Non compete

Are non competes enforceable in Colorado?

Asked on March 25, 2019 under Business Law, Colorado


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

CO does not like non-competes and does not enforce all of them. But there are 4 categories or situations where they are enforceable:
1) In connection with the sale of a business (e.g. former owner agrees to not compete with buyer);
2) When it can be shown they are necessary to protect trade secrets (e.g. against someone who knows very valuable, proprietary information);
3) To recover the expense of employee training or educational classes when the employee was there for less than 2 years (so they don't take the education, training, etc. they were provided and immediately jump ship and use it elsewhere); or
4) against executive, managers, and certain professional staff (e.g. house counsel) to those executives or managers (on the theory that a) such staff are more likely to have damaging information and b) that such people are more sophisticated and better able to protect themselves, and so need less protection from the law).

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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