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Colorado Case Law Pros And Cons

Satisfactory Essays

QUESTION PRESENTED Under Colorado case law, any covenant not to compete, which restricts the right of any person to receive compensation for performance of skilled or unskilled labor for any employer shall be void, unless the agreement fits into one of four statutory exceptions, such as the employee qualifying as executive and management personnel. If the agreement fits into one of the four exceptions it must be deemed reasonable in scope and duration, to be enforceable. Is the non-compete Mr. Marin signed, reasonable in scope and duration when he is not allowed to work for a period of two years in the states of Colorado, New Mexico, Arizona, Wyoming, Utah, or Kansas in directly or indirectly entering into the employ of, or rendering any service to, any person, partnership, association, corporation, or other entity engaged in cultivating cannabis; processing, extracting, or manufacturing cannabis concentrates, edibles, or other products; or dispensing medical or recreational cannabis. SHORT ANSWER …show more content…

Marin signed would not be enforceable because it is not reasonable by encompassing the states of Colorado, New Mexico, Arizona, Wyoming, Utah, or Kansas, and prohibiting him from directly or indirectly entering into the employ of, or rendering any service to, any person, partnership, association, corporation, or other entity engaged in cultivating cannabis; processing, extracting, or manufacturing cannabis concentrates, edibles, or other products; or dispensing medical or recreational cannabis for a period of two years. Therefore, it is likely that a court would not find the non-compete to be enforceable because it is broader than necessary to protect the legitimate business interests of GMH, and it imposes undue hardship on Mr. Marin, making the non-compete

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