Are non-competition clauses enforceable in Colorado?
Colorado statute prohibits many types of covenants not to compete, including any covenant not to compete which restricts the right of any person to receive compensation for performance of skilled or unskilled labor. However, Colorado law permits non-competition covenants in limited circumstances, including those involving executive and management personnel and officers and employees who constitute professional staff to executive and management personnel. When a covenant not to compete is statutorily permitted, it is enforceable only if it is reasonable in duration and geographic scope. To be reasonable, a noncompete agreement must not be broader than necessary to protect the promisee’s legitimate interests, and it must not impose hardship on the promisor. Covenants not to compete for terms up to five years and within distances of 100 miles are commonly upheld. When can “wrongful interference with business” lead to liability? The tort of intentional interference with contractual relatio
