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Non-compete agreements will generally prohibit an employee from working for a competitor for a certain period of time after they leave the business and within a certain geographic area.
Here are five ways to beat a non-compete agreement.Prove your employer is in breach of contract.Prove there is no legitimate interest to enforce the non-compete agreement.Prove the agreement is not for a reasonable amount of time.Prove that the confidential information you had access to isn't special.More items...
Even if an exception applies, Colorado courts require non-compete agreements to be reasonable in temporal and geographic scope to be enforceable.
The purpose is to prevent you from leaking confidential information that might help the competitors. Unlike the NCC, you are able to start your own business or work for a competitor but you just can't use the proprietary or confidential information you gained during employment at the new job.
While for many years Colorado has prohibited the use of non-competes (with certain exceptions), it recently became the first state to criminalize the use of non-competes exceeding the permissible scope of state law. A new Colorado law raises the stakes for employers using restrictive covenants.
You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.
Even if an exception applies, Colorado courts require non-compete agreements to be reasonable in temporal and geographic scope to be enforceable.
A covenant not to compete has three elements: (1) a limitation on the work that may be pursued by the employee, (2) a definite time, and (3) a definite geographical area. The time and geographical restrictions are usually straightforward; the limitation on work is a little more complex.
No matter what's in your contract, your old employer can't stop you taking a new job unless it could lose them money. For example if you might: take customers to your new employer when you leave. start a competing business in the same local area.