The Colorado non-compete agreement is a document which, once signed, prohibits an employee from working for a competing company as the employer and prevents them from soliciting clients and recruiting employees from the employer. In the State of Colorado, non-compete agreements are generally void unless they fall into one of the following categories:

  • Contracts designed for the preservation of Trade Secrets
  • Contracts designed for the purchase and sale of a business
  • Contracts which apply to executives and management personnel as well as their professional staff

If the agreement applies to one of the above categories, it will still be judged based on the geographical radius, time limit, and reasonable scope of business activities for which it is being constructed.

Non-solicitation agreements are treated with more leniency than non-compete agreements providing that the agreement is to dissuade the recruitment of employees and not the solicitation of the employer’s clients.

Laws – CO Rev Stat § 8-2-113 (2016)

Non-Compete Limit – No Statutorily Defined Limit

Non-Solicitation Limit – No Statutorily Defined Limit