Unfortunately, the statutes and jurisprudence that govern non-compete bans in Colorado are, at best, vague. C.R.S. Section 8-2-113 boldly notes that it is illegal to use threats, violence or other means of intimidation to prevent a person from participating in legitimate employment. He adds: “Any non-compete contract that limits the right of any person to be compensated for having a skilled or unskilled workforce for an employer is cancelled.” If an agreement is not covered by any of these exceptions, it is generally unenforceable in Colorado. However, once an employer proves that the agreement falls within one of these exceptions, it is likely that it will be respected as long as it is reasonable and not overly restrictive. However, Colorado`s bold statement within C.R.S. Section 8-2-113 against the ability to enforce non-compete agreements is misleading. The statement is totally inoperative if it can be successfully argued that the non-competition agreement in question falls within one or more of the four exceptions mentioned above. If you want more information or are not sure how you will design non-compete agreements in a staff agreement, ask us at Paperbark Law. At Hansen, we can help you manage the indeterminacy and complexity of the non-competition law. If you have other questions about your concrete agreement and you have agreements that could be subject to a non-competition clause, call us. We are experts on all issues related to non-compete agreements, their legality and their applicability within the State of Colorado.

To agree to a free consultation, please call 303-785-7777. Specifically, to be enforceable, the restrictions of the agreement must be proportionate in terms of duration and geographical scope. In this sense, a non-competition agreement should not be more comprehensive than necessary to protect the interests of the promised and should not impose severity on the manufacturer. In particular, non-competition obligations are generally met for terms of up to five years and 100-mile distances. See Reed Mill – Lumber Co., Inc. v. Jensen, 165 pp.3d 733 (Colo).