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Noncompete Agreement FAQs

Depending on your profession and your position within an organization, you might be asked to sign a noncompete agreement as a condition of your employment. Seeking to revise this document or challenging it in court might require the help of a legal professional. There are, however, some common questions that we might be able to answer on this website even before you schedule a consultation at the Denver office of The Litigation Boutique LLC.

What Is A Noncompete Agreement?

Sometimes referred to as a noncompete clause or simply a noncompete, this is an agreement between the employee and employer where the employee promises to refrain from accepting a position with a company that directly competes with his or her former organization. These contracts are typically in place to prevent the poaching of employees from one organization to another in an effort to steal proprietary knowledge or to gain a competitive edge.

Are Noncompete Agreements Enforceable?

Employees might believe that a certain clause in the agreement is outrageous, thus invalidating the entire contract. This isn’t always the case. Each document must be thoroughly examined in total. Our advice to you is this — if you’ve signed, or you’re being forced to sign, a noncompete agreement, it is wise to have the document examined by a lawyer before it becomes a factor. In other words, don’t wait until you are planning on leaving to find out if your employment contract prevents you from seeking a job opportunity in a segment of the workforce.

Do Noncompete Agreements Expire?

Typically, this will be written into the language of the contract itself. Most noncompetes will remain in effect for a year or less. A noncompete that attempts to limit your employment opportunities for longer than a year will likely be found to be invalid.

Are Noncompetes Federally Enforced?

No. Every state is different. Discuss the laws in your state with an experienced employment law attorney.

In Colorado, most noncompetes are presumed enforceable if they fall within the four statutory exemptions (CRS § 8-2-113):

  • The purchase or sale of a business or business assets
  • The protection of trade secrets
  • A provision providing for the recovery of the expense of training or educating an employee
  • Executive and management personnel and officers

Schedule A Consultation By Calling Or Emailing Our Firm

Challenging a noncompete agreement can be intimidating. Put an experienced Colorado firm on your side. You can schedule a consultation at our Denver office by either calling us at 303.578.2833 or completing our online contact form.