Legal Question in Business Law in Colorado

Non - Compitition Agreements

What are the specific rules governing and employee under Non-Compete Agreements and if that employee leaves the ''company'' to start a similar business. How is that person resticted under the non-Compitition Agreement.

Asked on 8/21/01, 10:20 pm

1 Answer from Attorneys

Louise Aron Attorney at Law

Covenants not to compete

Louise Aron

Attorney at Law

Lakewood Office:

1536 South Ingalls

Lakewood, Colorado 80232 USA

(303) 922 7687

fax (303) 922-1370

Cherry Creek Office:

300 South Jackson #100

Denver, Colorado 80209 USA

(303) 780-7339

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LawGuru User

Dear LawGuru User:

There are no "hard and fast" rules regarding covenants not to compete. I would need to talk with you and see a copy of the agreement you signed in order to fully advise you.

Generally however, covenants not to compete are not binding unless the employee was in a managerial position. If such an agreement or document was never signed, the employee cannot be restricted in any way in his or her future employment or business opportunities.

That said, employers can and do sue former employees under invalid covenants not to compete claiming breach of the covenant and "unfair business practices". This is done because employers believe the employee lacks the resources to fight the employer in court.

Thank you for contacting LawGuru.


Louise Aron

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Answered on 8/22/01, 6:20 pm

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