The digital age has made it easy for employees to live and work far from their employer’s location, and many Colorado businesses now have remote workers spread across the country. When one of those workers leaves and violates a contract, enforcing your rights as a company becomes harder. This is especially true when the ex-employee lives in another state.
Injunctions for non-compete clauses and how they work
Enforcing a non-compete agreement has become more challenging in recent years because the state has enacted greater restrictions on these clauses. Colorado Revised Statutes § 8-2-113 outlines under what circumstances a business may have a non-compete.
Colorado employers often use injunctions to enforce non-compete agreements, protect trade secrets, or stop former employees from working for a competitor. An injunction is a court order that tells someone to stop doing something or to do something specific. To get an injunction, you must show the court that you’re likely to win the case and that you’ll suffer harm if the court doesn’t step in.
The legal challenges that come with remote work
A problem can arise when the ex-employee is no longer in Colorado. A court in Colorado may issue an injunction, but that doesn’t mean another state must follow it right away. Courts in different states have their own rules, and they won’t always recognize another state’s order unless certain steps happen first. This is known as “domesticating” a judgment or order.
Unfortunately, some states, such as California, will not enforce non-compete agreements at all. If your ex-employee moves to one of those states, you might not be able to stop them from working for a competitor. Courts usually consider the laws of the state where the employee lives and works.
This doesn’t mean you have no options. You can take steps in your contracts to improve your chances. For example, make sure the agreement says Colorado law applies and that disputes must go to a Colorado court. While this won’t guarantee success, it helps show where the legal battle should take place.
Remote work changes how you protect your business. If you hire across state lines, understand that enforcing agreements may not be simple. Taking the right steps early can save you time and money later.
