Do non competes hold up in Colorado?

UPDATED: Oct 1, 2022

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Do non competes hold up in Colorado?

I worked for a company in Texas that
just moved to the Denver area. I liked
the company and told them that if they
moved to the area I would like to work
for them again. Company I am with has a
non competes on the application. Will it
hold up if I go to the other company?

Asked on July 9, 2018 under Employment Labor Law, Colorado


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

The vast majority of states, but not all, will enforce non-competition agreements. Your state (CO) is one of the ones that will not always enforce them. More specifically, CO only enforces non-competes if they:
1) Are used to protect trade secrets;
2) Were entered into when selling a business (i.e. if you were a former owner);
3) Are part of an agreement regarding tuition or training costs they paid for you (e.g. paying for you to get a degree or take classes) and the non-compete is used to force you to repay the education/training cost before you can work for a competitor; and/or
4) Are against managerial or executive staff (i.e. non-managers or non-execs will not be bound).
So if your situation or this agreement does not fall under any of the four situations above, CO should not enforce it against you.

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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