Colorado appeals court rules employers may face penalties for enforcing void pre-reform noncompetes
Key points
- A Colorado appellate court ruled Thursday in a case of first impression
- The court held that employers may face penalties for enforcing void noncompete agreements entered into before a recent change in state law
- The ruling concerns noncompete agreements entered into before the state's recent noncompete law change
A Colorado appellate court held Thursday, in a ruling of first impression, that employers may face penalties for trying to enforce a void noncompete agreement entered into before a recent change in state law, Law360 reported. The ruling addresses this issue for the first time. Not legal advice.
What employers should do
- Review noncompete agreements for Colorado employees by signing date, separating those entered before and after the law change
- Pause enforcement of void pre-reform noncompete clauses and have legal counsel review them
Policy details
- Jurisdiction
- Colorado
- Status
- Court ruling
- Effective date
- —
- Employers covered
- Employers in Colorado
- Official source
- Official source pending
Original report: Law360 ↗Edited with AI assistance. Facts are based on official sources and original reports. For information only; not legal, immigration or insurance advice.