Although Colorado allows and enforces non-compete agreements, they are generally disfavored among the courts if they are not properly drafted. The court upholds these agreements when used appropriately, such as when a business must protect their trade secrets, the sale of a business, or when a restraint must be put on key personnel, such as management personnel.
Colorado law dictates that physicians and surgeons may not be required to sign a non-compete agreement. In certain instances when a former employee breaches a non-compete agreement, the business may be entitled to the recovery of the expense of educating the employee.
Protect your Colorado business by also using a Colorado non-disclosure agreement form. Download a Colorado non-disclosure agreement form now!
To write a Colorado non-compete agreement, you should first review the requisite Colorado statutes. To help ensure enforceability, you should seek the legal advice of a licensed law firm skilled in handling covenants not to compete. To write your own Colorado non-compete agreement, include the following clauses:
Each party should receive a copy of the executed non-compete agreement for their records.