Non-Compete Agreement Law Changes Mar 08, 2022
Non-competition agreements, or “non-competes”, are used by employers to prevent key employees who may have acquired knowledge of confidential or sensitive business information during their employment from leaving the company to set up a similar business or go to work for the competition, and ultimately, a non-competition agreement is worth very little if it’s not enforceable. Changes are coming to Colorado law that employers need to be aware of when drafting such agreements.
On March 1, 2022, Senate Bill 21-271 takes effect. Colorado Revised Statue §8-2-113 addresses the Unlawful intimidation of worker, and this law recognizes a violation of the statute as a class 2 misdemeanor. Punishments for such violation can include fines and jail time. While the violation guidance is currently limited as to enforcement and exceptions, any employers should be mindful of these changes when entering into non-compete agreements with their employees.
For more information on non-competes and non-solicitation agreements, visit one of our other blogs on the topic.