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Three Basic Concepts Colorado Employers Need to Know about Employee Noncompetition Agreements

By Dan Block

1.  Noncompetition Agreements are not enforceable against Colorado employees except in four situations specified in the law.  One of those situations is when the employee’s job duties fit into a specified job category.

Based on recent Colorado court decisions:

2.  Continued employment of an “at will” employee is NOT sufficient consideration to make the Agreement enforceable.  The employee must either sign the Agreement as a condition of being hired or being given a raise or promotion, or the employee must receive some other consideration (like a bonus).

3.  The enforceability of the Agreement is based on the position held or to be held by the employee at the time the employee signs the Agreement, NOT when the employer seeks to enforce the Agreement.

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Dan Block is an attorney at Robinson Waters & O'Dorisio, P.C. in Denver. He advises clients on franchising, trademarks, employment, and other areas of business law. You can contact him at 303-297-2600.

 

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