Yet another state has made it harder for businesses to implement restrictive covenants—this time with criminal penalties.
Colorado’s restrictive covenants statute already provides that it is unlawful to “use force, threats, or other means of intimidation to prevent any person from engaging in any lawful occupation,” and further states that non-competes are invalid unless they fall into one of four categories:
- Covenants made in connection with the purchase and sale of a business (or the assets of a business);
- Covenants made for the protection of trade secrets;
- Covenants for the recovery of expenses incurred in educating and training employees who were employed for less than 2 years; and
- Covenants for executive and management personnel (and their professional staff) and officers.
That has been the law in Colorado for years—but a new, draconian portion of the statute will go into effect in just over a month.
Continue Reading Colorado Criminalizes Attempts to Curb Competition