Legal Question in Employment Law in Colorado

my company is requiring all sales personnel to sign a non-compete agreement. I have been with the company for 21 years. Can they terminate if I refuse? What are my options?


Asked on 3/29/10, 5:53 am

1 Answer from Attorneys

Robert Murillo Pivotal Legal Ltd.

If you don�t agree to the new terms of employment, the employer can certainly terminate you (on the assumption you do not have a contract that would prevent these new terms). It does not matter if you have been there two months or more than 20 years. The issue here is whether the agreement they provide you is enforceable or not. If it is not legally enforceable, then signing the agreement may be irrelevant. On the assumption that you leave or are terminated the employer must sue and prove the agreement is enforceable under Colorado (assuming that is the law at issue).

In Colorado noncompetition agreements may be enforceable provided they fall under one of the exceptions to the general prohibition against noncompetition agreements and do not unreasonably restrict the ability to earn a living. The most common exception is for protection of trade secrets. Assuming the agreement is valid under one of the exceptions, it still must be reasonable in: (1) the scope of activities sought to be limited; (2) the contract's duration or time restriction; and (3) the geographic restriction.

Since you already employed, the employer must provide some additional consideration to support the agreement (increased pay or other benefit) to be enforceable under Colorado law. If there is no additional consideration, the agreement may not be enforceable. It is therefore absolutely critical that you provide this agreement to an attorney to review the terms and get additional facts.

Contact an attorney before you sign or refuse to sign the agreement. Contact people you know and trust for referrals. If you have no referrals, review the attorneys on this site or contact your local bar association for their referral program. Good luck.

DISCLAIMER�This answer is for informational purposes only and discusses general legal principles, trends, and considerations and is not intended as specific legal advice regarding your question. This answer does not establish an attorney client relationship.

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Answered on 4/03/10, 9:55 am


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