Non-compete clauses in employment contracts are becoming a hot topic in employment law. You are not alone if you feel like you need to sign one before an employer offers you a job.
What exactly does a non-compete mean? Learn a few basics about how these employment agreements work before signing the dotted line.
Is There A Time Period?
Non-compete clauses or agreements tend to set out how long you have to wait after leaving your current company before working with a competitor. The restriction can last anywhere from six months up to two years maximum under Colorado law. This may bar you from taking another job in the same profession for that time.
Are Specific Businesses Named?
Some non-compete agreements give the names of specific competing businesses that employees may not work for after leaving the company. This could cause a legal quandary if a business not on that list opens. If it is not on the list, then you may have an argument for getting a job there, whether the company sees it as a direct competitor or not.
Is There A Geographical Limit?
Non-competes must include a geographical limit to where you can and cannot work. It cannot forbid you from working inside the state for a competitor, but it can limit where you may work miles from your current company. Some non-competes may specify a radius around a city, and others from one or more offices.
Any agreement limiting where you can work should you leave may need special consideration before signing.