Colorado Consulting Agreement for Independent Consultant with Non-Competition Clause
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How to fill out Consulting Agreement For Independent Consultant With Non-Competition Clause?
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FAQ
It is possible to find non-compete loopholes in certain circumstances in order to void a non-compete contract. For instance, if you can prove that you never signed the contract, or if you can demonstrate that the contract is against the public interest, you may be able to void the agreement.
Even if an exception applies, Colorado courts require non-compete agreements to be reasonable in temporal and geographic scope to be enforceable.
Non-compete agreements that do not fall under one of these exceptions generally cannot be enforced in Colorado. Unfortunately, the statutes and case law governing non-compete agreements in Colorado are vague at best.
Independent contractors and consultants may also be subject to a non-compete clause in their employment contract that seeks to avoid competition after they terminate a relationship and separate from the company.
Generally speaking, a non-compete agreement in Colorado is not valid and is not enforceable on an employee, to give that employee the opportunity to work where they want and use their skills.
Generally, under Colorado law, non-solicitation and non-competition agreements are deemed void, except in the following limited circumstances: (1) contracts for the purchase and sale of a business or the assets of a business; (2) agreements with executives, management personnel, and their professional staff; (3)
Non-compete agreements that do not fall under one of these exceptions generally cannot be enforced in Colorado. Unfortunately, the statutes and case law governing non-compete agreements in Colorado are vague at best.
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.
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.