Is It Legally Enforceable in Colorado?
Yes — provided that it only addresses hiring the former employer’s employees and does not prohibit the former employee from soliciting the firm’s clients.[1]
Restricting on soliciting clients is considered akin to non-compete agreements, which are prohibited.[2]
Types of Solicitation to Prohibit
In Colorado, a non-solicitation agreement can prohibit an employee from soliciting the employer’s:
- Former or current employees
- Contractors
- Affiliates
- Other similar parties
What to Include
To be considered reasonable in a court of law, the agreement should generally specify the following:
1. Time Restraint
The terms of the agreement should be limited to a specific timeframe, generally ranging from six months to two years after termination of employment.
2. Geographical Restraint
The terms of the agreement should apply to a specific area or location.
3. Specific Action
The agreement should specify the actions that the individual is prohibited from engaging in, such as recruiting all or specific employees.
Related Forms
Colorado Non-Compete Agreement
Download: PDF, MS Word, OpenDocument
Colorado Non-Disclosure Agreement
Download: PDF, MS Word, OpenDocument