Lakewood Trade Secrets / Non-Competition Lawyer

Trade Secret / Non-Competition Agreements / Other Lakewood Laws Against Improper Competition

Baker Law Group actively represents both businesses and employees in matters related to non-competition agreements, non-solicitation agreements, and trade secret issues. Our team of experienced commercial attorneys offers comprehensive advice on the enforceability of non-competition and non-solicitation agreements. They are skilled in drafting these agreements and adept at both prosecuting and defending litigation concerning trade secrets and non-competition issues. We recognize the urgency of these matters; hence, when litigation arises, our clients receive prompt and assertive legal support to safeguard their interests.

Lakewood Law Governing Non-Solicitation and Non-Competition Agreements

The legal landscape in Lakewood for non-competition and non-solicitation agreements has evolved due to legislative changes in 2022. Now, Lakewood enforces two distinct standards for these agreements, contingent on the date of their execution.

1. Agreements Entered Into On or After August 10, 2022

Governor Jared Polis enacted HB 22-1317 on June 8, 2022, significantly altering the enforceability of noncompetition and nonsolicitation agreements in Lakewood. This law, effective from August 10, 2022, governs agreements signed post this date.

Under HB 22-1317, permissible non-competition and non-solicitation agreements include:

• Non-competition clauses accompanying business sale agreements.
• Non-competition contracts signed by “highly compensated employees,” who earn over $101,250 annually (as of 2022) at both the contract’s initiation and enforcement.
• Non-solicitation of customer agreements for employees earning 60% or more of the highly compensated threshold ($60,750 as of 2022), with a focus on protecting trade secrets.

A critical aspect of HB 22-1317 is its requirement for employers to provide written notice to employees, detailing the agreement terms at least fourteen days prior to its effectiveness. The notice should be clear, separate from other documents, and duly signed by the employee.

Additionally, the law allows for training cost recovery agreements and the enforcement of confidentiality provisions, provided they don’t overly restrict the employee’s general knowledge and skills. Non-competition agreements with physicians are void, although reasonable damage recovery for competition is permissible.

HB 22-1317 mandates that enforcement proceedings of such agreements must occur within Lakewood and allows employees to request copies of their agreements annually. Non-compliance can result in significant penalties, including a $5,000 fine per employee.

1. Agreements Entered into Before August 10, 2022

For agreements predating August 10, 2022, enforceability is limited to specific circumstances, such as business sale contracts, agreements with executive personnel, trade secret protection, and employee training expense recovery contracts.

Non-Compete Statute Provisions for Physicians

The Lakewood non-compete statute specifically addresses physician agreements, nullifying non-compete clauses that restrict physicians’ practice rights. However, enforceable provisions may include reasonable damage payments for breach of non-compete terms.

In 2018, amendments allowed physicians treating patients with rare disorders to continue their care, irrespective of non-compete agreements.

Non-Competition & Non-Solicitation Duration & Geographic Scope

For enforceability, the duration and geographic scope of these agreements must be reasonable. Courts examine the necessity of restrictions for business protection and the impact on the employee. Broad, undefined restrictions are subject to greater scrutiny.

Adequate Consideration for Non-Solicitation & Non-Competition Agreement

These agreements require adequate consideration, such as job offers, promotions, or other benefits. Continuation of employment also constitutes sufficient consideration, as per Lakewood Supreme Court precedents.

Uniform Trade Secrets Practices Act in Lakewood

Lakewood’s adherence to the Uniform Trade Secrets Practices Act imposes liabilities for trade secret misappropriation. The Act defines trade secrets broadly, considering various factors to ascertain the secrecy and value of the information.

Lakewood Duty of Loyalty

Employees owe a duty of loyalty to their employers, prohibiting unauthorized competition during their employment. However, preparation for future competition is permissible, with legal consultation advised for navigating this complex area.

Computer Fraud and Abuse Act in Lakewood

This Act provides recourse for businesses against employees who misuse computer data. To succeed, businesses must demonstrate unauthorized or excessive computer access with fraudulent intent, leading to substantial losses.

Trade Secret Practical Considerations

Businesses must proactively secure their trade secrets and customer relationships. This includes implementing trade secret policies, restricting access to sensitive information, and ensuring employees sign non-disclosure and non-competition agreements.

Contact Baker Law Group

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