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Article Index » colorado: 10 Most Recent Articles
Report Link Whether a Manufacturing Process is a Trade Secret Must Be Considered in the Aggregate.
Littler Mendelson, P.C. - September 08, 2009
Six years after the United States Court of Appeals for the Tenth Circuit held that compilations of information could constitute trade secrets, the Tenth Circuit squarely addressed how to determine whether compilations are trade secrets in Hertz v. The Luzenac Group (No. 06-1324, 06-1358, Aug. 11, 2009). The appellate court clarified that a manufacturing process must be considered in the aggregate, but the components of the process may also be individually considered. Moreover, in considering whether an entity took adequate steps to protect its secrets, the court must focus on the steps the entity took instead of those it did not take. The Hertz court further held that a breach of confidentiality agreement action may lie even where the agreement does not protect trade secrets.
Report Link Colorado Passes Stricter Penalties for Employers that Misclassify Independent Contractors.
Littler Mendelson, P.C. - July 29, 2009
In June 2009, the Colorado legislature enacted the Misclassification of Employees as Independent Contractors Act. The new law creates a complaint process for workers who believe that they have been misclassified as independent contractors for purposes of unemployment insurance, and a process for the Colorado Department of Labor and Employment's Division of Employment and Training (the "Division") to issue Advisory Opinions to employers seeking advice on the proper classification of workers. Enacted as a means of punishing employers who are misclassifying employees as independent contractors and, therefore, not paying the proper amount of employment taxes, the Act has strict penalties for misclassification.
Report Link Colorado Court Provides Guidance On Enforceability of Covenants Not to Compete Against "Management Personnel".
Littler Mendelson, P.C. - July 02, 2009
In Colorado, covenants not to compete are void unless they fall within one of four statutorily defined exceptions. One of the exceptions that is unique to Colorado is that covenants that restrict "executive and management personnel and officers and employees who constitute professional staff to executive and management personnel" are permissible. Thus, for executive and management employees and their professional staff a covenant not to compete is lawful even in the absence of evidence that the management employee will threaten to disclose trade secrets.
Report Link Colorado Noncompete Agreements Require Consideration Beyond Continued Employment.
Jackson Lewis LLP - June 30, 2009
In a case of first impression, the Colorado Court of Appeals has concluded that an employer’s continued employment of an existing employee does not provide adequate consideration to support an agreement by the employee not to compete. See Lucht’s Concrete Pumping, Inc. v. Horner, 08CA0936 (Colo. App. June 11, 2009). Accordingly, the Court refused the employer’s request to enforce the noncompete agreement signed by an employee several years after he was hired.
Report Link Continued At-Will Employment Does Not Constitute Consideration for Noncompete Agreements in Colorado.
Littler Mendelson, P.C. - June 22, 2009
After years of uncertainty as to whether continued at-will employment constitutes consideration to support a noncompete agreement, the Colorado Court of Appeals squarely addressed the issue in Lucht's Concrete Pumping, Inc. v. Horner (No. 08CA0936, June 11, 2009). The appellate court clarified that continued at-will employment, without more, is insufficient consideration in return for a promise not to compete. The Lucht's Concrete Pumping panel further held that the duty of loyalty owed by an employee to his employer is only a fiduciary one when the employee is deemed an agent of the employer.
Report Link Colorado Raises Penalties for Misclassification of Employees.
Baker Hostetler LLP - June 10, 2009
On June 2, 2009, Colorado Governor Bill Ritter signed a bill intended to crackdown on the misclassification of employees as independent contractors. The new measure creates an enforcement mechanism within the Colorado Department of Labor, and raises the penalties for willful violations. Moreover, repeat violators face potentially severe fines and the possible loss of state contracts.
Report Link New Leave Requirement For Colorado Employers.
Fisher & Phillips, LLP - June 08, 2009
It's time for Colorado employers to update their employee handbooks. On June 1, 2009, Gov. Bill Ritter signed the "Parental Involvement in K-12 Education Act," which will take effect on August 5, 2009. This new law requires Colorado employers with 50 or more employees to grant up to six hours per month (up to 18 hours per academic year) of unpaid leave for the purposes of attending an academic activity for or with the employee's child.
Report Link New Colorado Law Clamps Down on Employers Who Misclassify Workers.
Fisher & Phillips, LLP - June 08, 2009
On June 2, 2009, Governor Ritter signed into law H.B. 1310 paving the way for any person to file complaints with the Colorado Department of Labor and Employment ("CDOLE") asserting that an employer has improperly classified an employee as an independent contractor. The new law became effective immediately and imposes a fine of $5,000 per misclassified employee, which could jump to $25,000 for a second or subsequent offense. Additionally, repeat offenders could be barred from contracting with the state for up to two years.
Report Link New Legislation Affecting Colorado Employers.
Jackson Lewis LLP - June 08, 2009
As part of his whirlwind trip around the state this week, Colorado Governor Bill Ritter has signed a number of bills that will affect Colorado employers. Significant developments include Governor Ritter’s approval of House Bill 09-1057, the Parental Involvement in K-12 Education Act, and House Bill 09-1310, which establishes penalties for employers who misclassify employees as independent contractors.
Report Link Colorado Employees Now Entitled to Academic Activities Leave.
Littler Mendelson, P.C. - June 04, 2009
In August 2009, Colorado employers must provide employees up to 18 hours of unpaid leave per academic year to participate in their children's academic activities. On June 1, 2009, Colorado Governor Bill Ritter signed the Parental Involvement in K-12 Education Act ("Parental Involvement Act") into law.1 The new law requires Colorado employers to provide nonsupervisory employees with up to 18 hours of unpaid leave time per academic year to participate in parent-teacher conferences and other school-related meetings.

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