In Nida v. Business Advisory Sys., 44 Va. Cir. 487 (1998), a loan officer resigned from a residential mortgage lender in Winchester, Virginia, and joined a competitor.
The lender sued the officer in a Virginia court for breach of a non-compete provision in an independent contractor agreement. The judge held for the officer, whose non-compete was overbroad and unenforceable as a matter . . .
When an employee breaches an valid non-compete contract, the employer is entitled to damages and other relief.
Employers have several options: preliminary injunction, permanent injunction, lost profits, liquidated damages, and attorneys’ fees.
Here is a summary of the damages that an employer is allowed to recover under Virginia law in non-compete cases.
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Many employees wonder, “If I sign a non-compete contract with a company, and later, the company is purchased by a different company, is my non-compete null and void?”
Maybe. It depends on the terms of the employment contract if a non-compete survives the merger.
The answer can be found in the contract itself. Look for an assignment clause. Is there any language explicitly assigning . . .
Are you here because your employer threatened you with a non-compete contract?
Let me guess how this conversation went. You were offered a new job. Or, you have been working at your job for a while now, and your boss walked into your office and plunked it down on the table.
In either scenario, you were probably told something to the effect . . .
Are non-compete contracts legal in Virginia?
Yes, non-compete contracts are legal in Virginia.
But as ESPN’s Lee Corso says on College Football Gameday, “Not so fast, my friend!” Just because non-compete contracts are legal does not mean that every non-compete contract will be enforced.
In fact, many employers use poorly written, formulaic non-compete clauses in employment contracts that have never been updated – even . . .
Are non-compete laws enforceable in Virginia?
Yes, non-compete laws are enforceable in Virginia.
Many employers regularly require key employees to sign non-compete contracts. Virginia law allows it.
But not every non-compete contract is enforceable.
Under Virginia law, a non-compete must be reasonably limited in duration, function, and geographic scope. Otherwise, if it is overbroad, then it is likely unenforceable and invalid.
A contract that prohibits the . . .
In Virginia, non-compete contracts are common among government contractors. There are a couple of reasons:
No contractor wants to invest time and resources to win a bid, only to lose key personnel to a competitor.
Government contracts involve trade secrets. Non-compete clauses protect the company’s proprietary information.
Given their importance, it was not surprising to see the Supreme Court of Virginia enforce a contractor’s non-compete clause . . .
Perhaps you moved to Virginia to accept a job. Or, you grew up in Virginia, but you have recently been offered a position with a company that requires a “non-compete” contract as a condition of employment.
Now, you are wondering, “Are non-compete contracts allowed in Virginia?”
The answer is “yes.” Non-compete clauses restricting the employment of doctors, engineers, sales managers, and other executive-level . . .
In order for a contract to be enforceable under Virginia law, it must be secured by consideration, a legal term for something of value offered in exchange for the employee’s promise not to compete.
So is “keeping your job” sufficient consideration under Virginia law to make a non-compete contract enforceable?
The answer is “Yes.” Most employers will provide no incentive to sign the non-compete, except, . . .
A physician signed a non-compete with a medical practice. Later, the practice’s sole shareholder, a physician, passed away. Thereafter, the practice ceased operating as a professional corporation and began operating a non-professional corporation.
On appeal, the Supreme Court of Virginia held a non-professional corporation has no standing, and no competitive interest, to enforce a restraint on trade against a physician, and found in . . .