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 State Employment Law Articles
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 Colorado Court Clarifies When Covenants Not to Compete and Solicit Customers and Employees May Be Enforced Against Executives, Managers and Their Professional Staff.Littler Mendelson, P.C. - August 14, 2007 Like many states, Colorado will not enforce a covenant not to compete unless it fits within a specific exception to the general rule of unenforceability. Unlike most states, however, Colorado permits agreements not to compete with executives, management level employees, or "professional staff to executive and management level personnel" even if the employer is unable to show that the employee possesses trade secrets. Colo. Rev. Stat. § 8-2-113(2)(d). Phoenix Capital, Inc. v. Dowell, 2007 Colo. App. LEXIS 1401, (Colo. App. July 26, 2007)
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March 24, 2010 Fisher & Phillips |
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