Remote work allows technology professionals to contribute to companies located almost anywhere. Working across state lines can create legal uncertainty when an employment agreement contains a non-compete clause.
Before accepting a new position or leaving an existing one, you should have an employment legal professional review your related employment agreement(s). The law identified in a contract does not always determine whether a non-compete can be enforced.
Why remote technology roles create special concerns
A choice-of-law clause identifies which state’s laws will govern an agreement. Employers include these provisions to create consistency across contracts issued to employees in different locations.
Technology employees frequently work with source code, product road maps, customer information and proprietary systems. Therefore, employers have legitimate reasons to protect confidential business information.
A broadly written covenant could prevent an employee from working for any business described as a competitor. In the technology sector, that definition may cover an enormous range of companies. It may also fail to distinguish between an employee’s former responsibilities and an unrelated role with a new employer.
Does Colorado law protect Denver-based remote workers?
Colorado usually limits non-compete agreements unless they fall within a statutory exception and satisfy the applicable requirements. Permitted restrictions may include:
- Certain agreements involving highly compensated workers
- The purchase and sale of a business
- The recovery of specified training expenses
Colorado law also addresses attempts to apply another state’s rules to workers with substantial ties to Colorado. A covenant may not require a worker who primarily resided and worked in Colorado when employment ended to have the dispute decided outside the state.
A choice-of-law clause can complicate a Denver technology worker’s transition to a new employer, but the state named in the contract does not necessarily have the final word. Early legal guidance may help you move forward without unknowingly violating a continuing contractual obligation.