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Non Compete Agreement Colorado

The adequacy of the duration is determined on the basis of the facts related to a specific non-competition agreement. For example, if a company has financial plans two years in advance, it would probably be reasonable to prevent a financial manager from competing with the company for up to two years. After two years, the CFO would no longer have information that would constitute an unfair competitive advantage if transferred to another company. The simple answer is to show what is not reasonable. National Graphics Company discovered a way to be unreasonable, was to remain silent about duration and geographical scope. By not specifying how long their employees had to abstain from competition and in what areas they were prevented from competing, the Colorado courts struck down the entire non-competition clause, even though it was intended for the sale of a company`s assets. If a non-compete clause remains silent in terms of geographic scope and duration, a Colorado court may simply consider it invalid. In the state of Colorado, non-competition prohibitions are generally not permitted unless they are covered by one of four exceptions: this category of competition prohibitions applicable in Colorado is necessary for a competitive market. Why would someone invent a new technique or business strategy if they couldn`t protect these trade secrets? A small contractor risks its competitive advantage every time they hire a new employee or creditor to perform repairs or audits. Fortunately, in Colorado, non-competitions are allowed for trade secret cases. Trade secrets may include: design, procedures, procedures, formula, improvement, confidential business or financial information, list of names, addresses or telephone numbers, or any other information relating to a secret and rewarding business or profession.

There are a number of potential problems associated with unnecessary competitive competitions. If you are forced to sign such an agreement, you will find that the consequences are often poorly communicated, so that you do not understand what an agreement entails. It is important, as a small contractor or franchisor, to understand that the court will assess the secrecy of cases under six factors to determine whether it is a secret that should be protected. In Colorado, it is not enough to characterize your procedure as a trade secret to justify its protection by a non-compete clause. The court (1) will check the extent to which the information is known outside the transaction; 2) the extent to which it is known to business leaders, such as. B workers; (3) the precautionary measures taken by the holder of the secrecy of the cases with regard to the confidentiality of the information; (4) savings and value to the holder of information against competitors; (5) spending or money spent on obtaining and developing information; and (6) the time and costs that others would use to acquire and reproduce information. Colo. Rev.

A company may also enter into a non-compete agreement with a member of the management or management staff. These individuals often have intimate knowledge of a company and have access to strictly confidential information. If this knowledge and information is shared with a competitor, this could give that competitor a serious advantage. After informing him of your intentions, he politely, but objectively, reminds them that you signed a non-compete agreement when they were first hired.