city

Non-Compete Agreements Attorney in denver

Safeguard your business from unfair competition with our Denver non-compete agreements lawyers. Sequoia Legal’s team comprises experts in drafting, implementing, and enforcing non-competes.

Schedule FREE Consultation

Why Non-Compete Agreements Are Important for Your Business

Non-compete agreements, also known as covenants not to compete, are contracts that prohibit employees from sharing employer trade secrets, setting up competing business, or working for competitors during the term of employment and for some time afterward.

Some non-compete agreements in Colorado are stand-alone agreements, while others are merely clauses in an employment contract. Some agreements are more specific than others. A non-compete agreement might, for example, prohibit the employee from working anywhere in the Denver semiconductor industry for six months after leaving their current employer. Non-competes are relatively unimportant in some industries, while they are critical in others (the tech industry, for example).

Our Professional Merger And Acquisitions Service Process
We Expertly Handle Various Forms of M&A Transactions

Protecting The Rights Of Employers And Employees

Although courts are suspicious of non-competes, they protect legitimate company property and its business goodwill. Some activities that non-comperes forbid are already against the law, such as divulging trade secrets, for example. What a non-compete does is to add an additional penalty, breach of contract, to existing legal penalties. Other activities, such as working for a competitor, are not otherwise illegal.

Non-competes protect employees as well, although these protections are typically inserted into the contract language by substantive law. State and federal law prevent a non-compete from indefinitely or unreasonably restricting an employee’s right to work for a competitor or work in a certain industry, for example.

Protecting the Rights of Business Buyers

The purchaser of business buys not only its physical assets, such as its factories but also its intangible assets, such as its intellectual property and its trade secrets. The buyer does not want the seller competing with it by using the business’s proprietary knowledge that the buyer has already purchased. 

As such, a non-compete agreement, either stand-alone or as part of a merger and acquisition or a purchase and sale agreement, is almost always a necessary part of a business purchase agreement. Just as with an employer-employee non-compete agreement, any non-compete restrictions must be reasonable in time and geographic scope. 

Our Professional Merger And Acquisitions Service Process
Preparing-Business-for-Sale

Legal Standards for Non-compete Enforcement in Colorado

Colorado non-compete law forbids non-compete agreements except for certain specified purposes:

Trade secrets

Colorado non-compete law allows you to use non-competes to protect trade secrets. The main reason for this is that trade secrets, while valuable, enjoy almost no formal legal protections. Think of the formula for Coca-Cola, for example. Colorado law sets certain standards that proprietary knowledge must meet to be considered trade secrets.

Sale of a business

A non-compete agreement incident to the sale of a business should place specific but reasonable restrictions on the seller’s freedom of action after the completion of the sale of the business. The seller should not be able to use his or her intimate knowledge of the business to undermine the buyer. Nevertheless, the seller should not be burdened with unreasonable restrictions.

Management, Executives or Professionals

Management, executives, and professionals are vital to the success of a company. Due to their knowledge of company confidential information, they can bring the company down if they share their knowledge with a competitor. Employers are allowed to negotiate reasonable restrictions on the ability of this critical personnel to work for competitors.

Additional Enforcement Considerations

A non-compete agreement must be reasonable in duration and geographic scope, and it must be reasonable on the whole. In addition, employers or business owners need to consider other issues such as:

  • How to protect themselves against leaks by independent contractors (who are not bound by employment agreements);
  • What non-compete restrictions should be placed on current employees;
  • What defenses an employee or former employee might assert to have a non-compete agreement declared unenforceable.

It is also important to keep up with changes in non-compete agreements under Colorado law. What may be acceptable today might not be acceptable tomorrow. Restrictive covenant agreement lawyers routinely keep up with these changes.

Attorney working for non-compete contract.

Who We Assist

  • Employers
  • Employees
  • Executives
  • Buyers and sellers of businesses
  • Sub-contractors

Our Scope of Legal Services
for Non-Compete Agreements

Sequoia Legal is a business law firm in Denver, Colorado. We help our clients to negotiate, draft, review and implement Colorado non-compete agreements. These agreements must be reasonable in scope and duration, detailed, agreeable to both sides, and, above all, enforceable.

Attorney working for non-compete agreements.

Drafting Non-Compete Agreements

Significant legal restrictions govern non-compete agreements in Colorado. Because of these, drafting them has become an art. The drafter of a non-compete agreement must take into account two competing considerations:

  • Protection of the client through the express terms of the agreement;
  • Enforceability since the most cleverly drafted agreement is useless if the courts refuse to enforce it.


Legal Advice On Implementation

We advise our clients on how to implement a companywide confidentiality policy.

Reviewing Non-Competes & Other Covenants

Courts tend to be suspicious of restrictive covenant agreements because excessively restrictive agreements violate freedom of contract, perhaps the most important economic right under the US Constitution. Restrictive covenants might be found in non-compete agreements, confidentiality agreements, and nondisclosure agreements.

An executive or manager may be faced with whether to sign a restrictive covenant, refuse to sign it, or demand modifications. Ultimately, they need to fully understand the implications of the agreement under various possible scenarios. That is what we are here for, and that is why we frequently review these kinds of documents. 

Providing Legal Remedies for Violations

A well-considered confidentiality policy can generate many important rights for your company. Rights are useless, however, unless you can enforce them. We know how to enforce your rights, and we will not hesitate to do so. When it comes to confidentiality matters, the most important remedy is usually an injunction issued in time that can impose serious penalties on anyone who violates it. 


Short of litigation, however, we also offer other services such as negotiation of the terms of non-compete agreements, renegotiation of these terms in case of changed circumstances, and other strategies that can keep a dispute out of court.

Why Choose a Denver Non-Compete
Lawyer From Sequoia Legal?

Sequoia Legal is a team of six Denver business attorneys who enjoy rich experience in a multitude of Denver small business legal issues, including contract law (especially non-compete agreements), international commercial transactions, regulatory compliance, and more.

Why Work With Sequoia Legal For Your Next M&A Deal?

OUR TEAM

Meet Our Contract Lawyers

You likely are well aware of the complexities and pitfalls involved in the legal side of being a business owner.

Meet Your Attorneys

Frequently Asked Questions

What Can an Employer Do if an Employee Violates the Non-Compete?

If an employee breaches a non-compete agreement, the employer can seek an injunction to prevent the employee from continuing the breach. Violation of an injunction is considered contempt of court. An employer might also sue the former employee or even their new employer for damages. Another means of enforcement is to seek civil or even criminal sanctions under state and federal trade secret law.

How Restrictive Are Non-Compete Agreements?

An enforceable non-compete agreement is not supposed to be any more restrictive than necessary to protect the employer’s legitimate confidentiality interests. The longer the duration and the wider the geographic scope of a non-compete agreement, the more likely it is that a court will declare the agreement unenforceable. A non-compete attorney should draft this document.

How Long Is a Non-Compete Enforceable?

A non-compete agreement cannot be open-ended; it must be limited in duration. In Colorado, there is no set maximum duration - it all depends on what is necessary to protect the employer’s legitimate interests. A duration of six months, however, is considered acceptable in most cases.

How Is Non-Compete Different From Non-Solicitation Agreement?

A non-compete agreement prevents the employee from working for the employer’s competitors. A non-solicitation agreement is less restrictive; it prevents a former employee from soliciting any of the current employer’s clients. This restriction is designed to protect the employer against the situation where an employee quits and then attempts to “steal” their former employer’s clients.

Get Our Professional
Non-Compete Contract
Counsel Today

At Sequoia Legal, our mission is to bring Big Law experience to small and medium-sized businesses.

Call us today at (303) 476-2851 or contact us to learn how we can provide legal counsel and help you draft an enforceable non-compete agreement in Colorado.


Select from the list

Thank you!
Your Submission Has Been Recieved
Oops! Something went wrong while submitting the form.

Denver Office

7355 E. Orchard Rd., Suite 375 Greenwood Village, CO 80111

*by appointment only

Office Hours

Mon - Fri
9am - 5pm
Call For Off-Hour Appointments

Licensed in New york, Colorado, & Alaska with an international flair

What Our Clients Say

5

Gary D.

Sequoia Legal has been helping us with regulatory compliance matters for years now. So far, we have not had a single complaint lodged against us by any patient or entity, and no enforcement actions have been implemented or threatened. I can’t praise them enough.

5

Dana R.

Our company’s HIPAA compliance system was a poorly constructed time bomb waiting to explode until we contacted Sequoia Legal. With their help, we were able to fix our broken system in just a few weeks. If you are doing business in Colorado, Sequoia Legal is the name to remember.

5

Anna B.

We retained Sequoia Legal to perform a comprehensive review of our export compliance procedures. As a consequence of their advice, we were able to streamline our procedures to produce a much more effective, virtually error-free system. Would definitely recommend it to any company involved in international trade out of Colorado.

5

Jay S.

The attorneys at Sequoia Legal were always very accessible to me, and they explained matters to me with more clarity than I expected. Eventually, we were able to obtain an export license that had eluded us for quite some time.

5

Ehret Faircloth

I have had an outstanding experience working with Hunter Boone at Sequoia Legal. He quickly responded to any and all requests for legal advice. His work was thorough, complete and timely. I will definitely be returning in the future.

5

Steve Moore

Hunter Boone, Sequoia Legal, LLC, Has reviewed two contracts for me over the past three years. One the sale of our home, the other the sale of our business after 35 years. Hunter handled everything for us professionally and thoroughly! We will use Sequoia Legal again in the future if needed.

5

Rob Brindley

Andrew and Hunter where extremely knowledgeable, ethical and professional in helping me navigate business contracts with high liability. Thank you guys!

5

Kathy Reed

I have used Sequoia Legal for the last 4 years. No matter what my needs are they are quick to respond, follow up and resolve my issues. I wouldn't use anyone else for my legal needs.

5

Marco Rafanelli

Sequoia Legal has been a critical component to my business's success. I rely on Andrew Lopez and his team to steer us through the many challenges a business faces, from contract negotiations to M&A to internal legal matters. You are in good hands with Sequoia!

5

Shawn McIntire

Andrew and Hunter have been an invaluable partner for our business. They are extremely responsive and have been advising us on a variety of issues. I would highly recommend them to anyone looking for corporate counsel assistance