Does the employer have a legitimate interest that it protects by the non-compete agreement? Most states allow a job to take place, which means that your employees can leave you at any time to follow other activities. But what if these companies involve directly competing with your company? One way to avoid this scenario and protect your business is for employees to sign a non-compete clause when they are hired. However, before signing each staff member, you need to understand the legal restrictions and restrictions on non-compete agreements. Non-compete bans in the state of Colorado are generally overturned, unless they fall within a few selected exceptions. [34] These exceptions include „a) any contract to purchase and sell a business or the assets of a business; (b) any contract relating to the protection of trade secrets; (c) any contractual provision to reimburse the training costs of a worker who has served an employer for less than two years; and (d) executives, executives, executives and employees, who represent professional staff for executives and executives. [34] When the statute came into force, Colorado`s approach to regulating non-compete agreements was a unique approach. [35] As noted above, 49.4% of respondents reported that at least some workers in their establishment had to enter into a non-compete agreement and 31.8% of the respondents said that all employees in their establishment were required to enter into a non-compete agreement. Unfortunately, the 17.6% of employers who say they do not use a non-compete clause for some workers have not provided information on the proportion of workers who are not competitive. That is why we are not in a position to determine at the federal level the exact proportion of workers subject to non-competition obligations. However, we can offer a number of possibilities.
In the next two sections, we show that between 27.8% and 46.5% of private sector workers are non-competitive. The application of these shares to the 129.3 million private sector employees means that between 36 and 60 million private sector workers are subject to non-compete agreements14. While non-competition obligations are analyzed in accordance with national law and each state is different, certain general factors are examined by the courts to determine whether a non-compete agreement is reasonable: a non-compete agreement is a contract in which a worker promises not to compete with an employer at the end of the employment period.