Legal Question in Employment Law in Colorado
Can a colorado employer enforce a non-compete after they cut your salary by 40%. What's to say they will not cut it again - I fear this will happen. I signed the agreement approx. 7 months after hire. No additional consideration was given. The pay cut came 7 months after I signed the non-comp. I would not have signed it if I knew this was going to happen. My husband closed his business 2 months before the pay cut to help me out with at home and with my high paying job. Now we are stuck and feel like we are being held hostage. I definitely fall in the manager catagory of non-comps in CO. About a month prior to the cut they assured all managers that our commissions will not change. Funny thing is I actually got a promotion about 2-3 weeks before the pay cut. No consideration was given for the promotion either. Just more work.
1 Answer from Attorneys
In Colorado noncompetition agreements may be enforceable provided they fall under one of the exceptions to the general prohibition against noncompetition agreements and are reasonable in (1) the scope of activities sought to be limited; (2) the contract's duration or time restriction; and (3) the geographic restriction. The enforceability of the contract is not normally affected by a cut in pay unless the contract specifically provided that a cut would limit the contract in some manner.
If you signed the agreement as a condition to being initially employed, that is sufficient consideration. After employment, however, the employer must provide some additional consideration to support the agreement (increased pay or other benefit) to be enforceable under Colorado law. If there is no additional consideration, the agreement may not be enforceable.
The foregoing are just general observations. Whether this contract is enforceable or not would require review of the agreement and additional facts. It is strongly recommended that you contact an attorney to review.
DISCLAIMER�This answer is for informational purposes only and is not legal advice regarding your question. This answer does not establish an attorney client relationship.
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