Congratulations! You just got a a job offer! They’re sending over a contract for you (sweet!) that tells you how much you’re going to make (ka-ching!) and how much vacation you’re going to get (hello, Boracay!). What’s this? Oh, a non-compete agreement. What’s that?
A non-compete agreement is basically an agreement that if you and your employer part ways, you cannot engage in a similar business or similar type work. Basically, your employer doesn’t want you to go to a competitor if you leave, voluntarily or involuntarily. Generally, these sort of agreements will be in effect for a year after you leave.
In Colorado, the use of agreements that restrict the right of any person to receive compensation for performance of skilled or unskilled labor for any employer are generally disfavored. However, there are four specific exceptions where the use of non-compete agreements may be permitted if the agreements are reasonable in purpose, duration, and geographic scope:
- A contract for the purchase or sale of a business.
- A contract to protect trade secrets.
- A contract allowing an employer to recover the expense of educating and training an employee who has served for a period of less than two years.
- A contract that applies to executive and management personnel and officers and employees who constitute professional staff to executive and management personnel.
So, if the agreement reads that you cannot do the same kind of work anywhere for ten years, it’s probably not valid. This is a fairly technical and complex area of law, and depending on what kind of work you do, you may want to talk to a lawyer. If you violate a valid non-compete agreement, the employer could come after you and possibly jeopardize any new job you may have taken.
Peter Mullison is a bankruptcy attorney at Colorado Bankruptcy Law Group, LLC. If you are considering Chapter 7 or Chapter 13 personal bankruptcy, schedule your free, confidential bankruptcy consultation with a Colorado bankruptcy attorney today. Our online scheduling system allows you to schedule bankruptcy consultation at a time that is convenient for you.
Colorado Bankruptcy Law Group, LLC is a personal bankruptcy firm serving clients in the greater Denver area.
photo: http://www.flickr.com/photos/purplemattfish/ / CC BY-NC-ND 2.0
No related posts.
Wed, Feb 17, 2010
Uncategorized