It is possible your workplace will attempt to restrict your future job prospects after you leave by your own decision or get fired. How your employer does so is important since Colorado restricts the use of non-compete agreements. Your employer might only require you to sign a non-disclosure form.
Sometimes people use the terms non-compete and non-disclosure interchangeably. While a non-compete may include non-disclosure terms, the two are actually different since a non-compete often requires more from an employee than a non-disclosure form.
The purpose of a non-compete
The terms of non-competes can vary. Still, the general idea is to keep you from starting your own business or going to work for a company in the same industry as your current employer.
Even so, non-competes must have limits. A non-compete contract should not prevent you from moving far away and taking a job there. Also, a non-compete must also include a reasonable time limit or a court might invalidate it.
The purpose of a non-disclosure form
In contrast to a non-compete, a non-disclosure contract actually does not bar you from working for a competitor or starting a similar business. However, it does require you not to reveal sensitive information you may see while working for your current employer. Such information often includes the following:
- Product information
- Client and customer lists
- Financial information
- Business strategies
- Technical designs
It is important to be cautious as non-disclosure contracts can include many details. In fact, you might not be able to discuss the form openly after signing it. If your employer provides you with any separation agreement, paying close attention to it may be beneficial.