Colorado courts can maintain a non-compete agreement as long as they do not unfairly penalize the worker. However, the court`s decision must also balance the employer`s investment in the employee. Therefore, if the employee has spent a great deal of time and resources to train staff at work and the worker is aware of trade secrets that could result in serious financial losses for the employer, a stricter non-competition agreement can be maintained. A typical non-compete clause may take two years, but Colorado courts have upheld non-compete bans that have lasted twice as long. It is important that even if an agreement falls within one of the above categories, it does not automatically mean that the agreement is applicable. Instead, Colorado courts have adopted additional requirements that the non-compete agreement must meet in order to be applicable. An obligation not to compete is a contract between an employer and a worker or contractor in which the worker or contractor agrees not to work for the employer`s competitors for the duration of the employment or employment and/or for a certain period after the worker or contractor has entered into his or her services with the employer. The Colorado Court of Appeals has ruled that a non-competition regime in general will survive a merger, allowing the surviving company to enforce non-competition rules. But here, the court found that Dr. Crocker`s shareholder rights were used by GCA with his rights as an employee – he could not be an employee without being a shareholder, and he could not be a shareholder without being an employee. Since the Court did not directly establish a non-competition obligation, the Court generally invoked the duty of non-competition and decided that it could only apply the non-competition obligation if it was „reasonable“ and, to be reasonable, and could not impose severity on the worker. Any non-compete agreement that limits a person`s right to be compensated for the provision of skilled or unskilled labour for an employer is cancelled, but that subsection . .
. . Does not apply: It is important that the exemption from the sale of business in Colorado applies as well to the sale of stakes in a business, for example the sale of shares. B, only to the acquisition of the company`s assets. For non-compete obligations in this category, Colorado courts have recognized that the purchaser of the business has a strong interest in protecting the good incorporating of the business in addition to the capital and assets of the company.