Courts, statutes tend to be more permissive of non-compete agreements in sale of business. How far does this permissiveness extend? Can companies, workers make their own definition of business sale to make it more likely that non-compete agreement will be enforced?
Colorado General Assembly passed noncompete statute, C.R.S. § 8-2-113. Governor Jared Polis signed bill June 8, amendments in effect August 10, 2022. Colorado courts applied strictures of C.R.S. § 8-2-113 to customer non-solicitation covenants, Phoenix Capital, Inc. v. Dowell.
As we previously reported, the Colorado General Assembly passed a bill in May making substantial amendments to Colorado’s noncompete statute, C.R.S. § 8-2-113. Governor Jared Polis.
As a general matter, courts and statutes tend to be more permissive of non-compete agreements in the context of the sale of a business. However, exactly how far does this.