The Colorado Court of Appeals recently decided an issue of first impression regarding noncompetition and nonsolicitation agreements. The decision in 23 LTD v. Herman highlights an important consideration for Colorado restrictive covenants: it is the parties’ job to craft narrow agreements, and they cannot count on the courts to step in and rescue an otherwise overbroad agreement.
Restrictive Covenants (CO)
Colorado Supreme Court Rules Continued Employment Is Sufficient Consideration For Restrictive Covenant
Reversing a state court of appeals’ decision, the Colorado Supreme Court has held that an employer’s continued employment of a current at-will employee provides sufficient consideration for a non-competition agreement entered into after the inception of employment. Lucht’s Concrete Pumping, Inc. v. Horner, 09SC627 (Colo. May 31, 2011). The ruling will impact Colorado employers’ decision about how and when to implement non-competition agreements.
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