As an employer, you do everything in your power to protect your business while ensuring that your employees are treated fairly. It sounds easy enough, but it’s certainly a delicate balance. An employment contract may be beneficial in striking an accord where expectations and obligations are clear, but you have to be careful when working with your employees so that you don’t end up running afoul of Colorado state employment law.

Most non-compete agreements are illegal in Colorado

Some other states regularly enforce these agreements that restrict a workers employment activities after leaving your employ, but Colorado takes a hard line on them. In fact, broadly speaking, Colorado law indicates that it is illegal to create an agreement that restricts an individual’s ability to receive compensation for work. There are some very narrowly tailored exceptions, such as contractual agreements that seek to protect trade secrets and those that pertain to executive and management personnel.

What this means for you

You need to find creative ways to protect your interests while avoiding boilerplate contract language that you find online. If you try to draft your own contracts utilizing online forms, then you’ll probably find yourself running afoul of the law, which can open you up to liability and put your business at risk.

There’s too much at risk to try to wing important legal matters like these. If you’re worried about how to protect your business interests from employees who will eventually move onto other jobs, then you need to think about what kind of exposure you want to give that employee to your business operations. You might also want to consider other risk management strategies that might be right for your business.

If you think that your business could benefit from a legal strategy that addresses these concerns, then it might be time to speak with an attorney who knows Colorado law and how to competently utilize it in a fashion that supports your and your business’s best interest.