Non-Compete Attorneys in Denver, CO, Fighting for Our Clients’ Rights
A non-compete agreement has long been seen as the best way to protect trade secrets and other invaluable company information. These contracts are certainly still important in the present day, but recent changes to Colorado law have made them more complex. In some cases, former employees may not be bound by these agreements at all. That’s why you should speak to a non-compete lawyer in Denver, CO prior to crafting such a contract or trying to enforce it. Otherwise, you could put your entire business at risk.
At Ragab Law Firm, our Colorado business lawyers have helped build a reputation for helping companies avoid unfair competition. With a combined experience of over 40 years, you can rest comfortably knowing that we have the knowledge and dedication necessary to protect your organization. Even as Colorado continues its crackdown on overly restrictive covenants, you have the right to safeguard any trade secret and prevent a former employee from using knowledge of your company to give an unfair advantage to competitors.
Contact Ragab Law Firm today to schedule a free consultation.
What Are Non-Compete Agreements?
A non-competition agreement is a contract signed by an employee that restricts certain competitive activities when they leave a company. Their typical focus is to prevent the misuse of trade secrets and other sensitive information the employee may learn during their time of employment. As an example, imagine the damage it could do to a certain soda company if someone from their professional staff went to a competitor and shared their top-secret recipe. Such trade secret misappropriation would be a violation of employment law.
A non-compete agreement can take many forms. In some instances, they’re merely a contractual provision providing that the employee will not share certain information with competitors or use such information to open a competing company. However, these contracts have also restricted those who provide skilled or unskilled labor to an organization from working with any competitors within a specific geographical region for a certain period of time. In Colorado, contracts that restrict competitive activities for up to five years have historically been upheld.
Who Should Sign Non-Compete Agreements?
Non-compete agreements are an essential element for protecting your business. Whether you have an invaluable trade secret or merely want to prevent former employees from utilizing client lists, you have a legitimate interest in safeguarding information that could hurt your company if competitors discovered it. Such agreements should only be used in specific circumstances, though, since not every employee will be privy to your organization’s most sensitive information. Consider having the following individuals sign such agreements:
Executive and Management Personnel
Upper-level employees are privy to an enormous amount of information. Executives and management personnel constitute professional staff — which is an important distinction under many state laws. These employees should sign such agreements to ensure that their employer’s business will not be negatively affected if they leave the company.
Anyone Privy to a Company’s Trade Secrets
An individual doesn’t have to get paid an executive salary to have access to sensitive information. Anyone privy to certain knowledge — whether it’s trade secrets, marketing strategies, upcoming products, or other confidential details — could harm a company if they share such knowledge with others. Don’t be afraid to ask these employees to sign a non-compete agreement, but make sure you’re following relevant state law when doing so.
Getting It Right Is Paramount
The two employee types mentioned above cover a large array of individuals, but this list isn’t necessarily exhaustive. Unfortunately, continuing changes to Colorado law can make it difficult to understand when non-compete agreements are appropriate or even legally allowed. This is why having an experienced employment attorney on your side is important. Contact Ragab Law Firm today for a free consultation.
Are Non-Compete Agreements Enforceable in Colorado?
Like in most other states, non-compete agreements are fully enforceable in Colorado. Of course, this is only under specific circumstances. One important thing to note is that the state has criminalized the enforcement of such agreements if they’re in violation of the general non-compete statute. Fortunately, this doesn’t mean an employee with a trade secret can shop that information around to competitors. Even with changes to non-compete and employment law in Colorado, you still have every right to safeguard your business interests.
The important thing that any business owner should remember is that the law regarding non-competition agreements in Colorado has recently been in constant flux. In January 2022, certain enforcement activities were criminalized — and it was just a few months later when the legislature passed new rules regarding who could be required to sign such documentation. These changes typically focus on removing unfair burdens from individuals when their employment ends, but as a general rule, such changes make non-competition clauses less enforceable.
With an attorney for employment claims experienced in employment law and non-compete agreements on your side, though, you can enforce reasonable agreements without infringing on individual rights or free trade.
Contact a Non-Compete Lawyer in Denver, CO Today
Non-competition agreements may be the best tool a business has for protecting its trade secrets and other sensitive information. While Colorado has certainly weakened what these contracts once allowed for, they haven’t removed the metaphorical “teeth” of such provisions entirely. In fact, the law still very much allows companies of all sizes to safeguard their organization and competitive activities. However, even accidental violations of non-compete agreement laws can result in serious penalties. This is why you should have a lawyer on your side.
At Ragab Law Firm, we dedicate ourselves to reaching the best outcome for everyone with whom we’ve established an attorney-client relationship. The success of your business is our top priority, so we’ll make sure any employment contract you create is legal, reasonable, sufficient, and enforceable under the law. And if a former employee has wrongfully used your trade secrets or other sensitive information, we’ll fight nonstop to protect your business interests. Contact us today by calling (303) 564-7313 to speak with a non-compete lawyer in Denver, CO. Let us help you better understand your rights and the best way to move forward.