Duration of non-compete

In an interesting development, Judge Daniel’s decision in Xantrex Technologies v. Advanced Energy Industries has been appealed to the Tenth Circuit. One of the issues on appeal is whether Judge Daniel erred when he ruled that the employee defendant should be enjoined from working for a competitor for a full year from the date of his order.

In many non-compete cases, an issue arises about when the validity of a non-compete should be determined. Under Colorado’s non-compete statute, a non-compete won’t be enforce unless it falls within one of the four exceptions set forth in the statute. One  of those exceptions is for ‘executive and management personnel". 

Many employees sign non-competes, however, when they are

In a recent decision, Phoenix Capital, Inc. v. Dowell, the Colorado Court of Appeals appeared to establish a "bright line" rule for determining the duration of an employee’s obligations under a non-compete. The trial court had ruled that the non-solicit provisions were only enforceable for the period set forth in the provision itself (that is, one year