As a Denver executive, you’ll likely encounter restrictive covenants in your employment contracts. Two standard clauses often need clarification: non-compete and non-solicitation agreements.
While both protect company interests, they serve different purposes and affect your career differently. Let’s explore these legal terms to help you make informed decisions.
What is a non-compete agreement?
Non-compete agreements prevent employees from getting a job at a competitor or starting a competing business for some time after leaving their current employer. A non-compete agreement:
- Limits your ability to work in your industry or field
- It is harder to enforce in Colorado due to stricter laws
- Often applicable for 1-2 years
These agreements can significantly impact your career options, so it’s crucial to understand their terms and implications.
What is a non-solicitation agreement?
Non-solicitation agreements limit former employees from approaching the company’s clients, customers or employees for a specific period post-employment. A non-solicitation agreement:
- Restricts interaction with former employer’s clients and employees
- They are more enforceable as they’re less restrictive on employee mobility
- Usually lasts for 6-12 months
While less restrictive than non-competes, non-solicitation agreements require careful consideration before signing.
Implications for your career
Consider each clause’s long-term effects when reviewing your executive contract in Denver. A non-compete might offer your employer broader protection but could limit your future opportunities. A non-solicitation agreement allows career flexibility while respecting your former employer’s client relationships.
Remember, these agreements’ enforceability varies based on specific circumstances and evolving Colorado laws. Always consult a legal professional to understand how these clauses might affect your unique situation in Denver’s business environment.
By grasping the distinctions between non-compete and non-solicitation agreements, you’ll better navigate your career path while respecting legal obligations.
