Articles

Damages for Breach of a Non-Compete in Virginia

When an employee breaches a 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. Preliminary Injunction What is a preliminary injunction? A preliminary injunction is a

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What Happens to a Non-Compete After a Merger?

Many employees wonder whether non-compete agreements are enforceable if their employer merges with or is acquired by a different company.  It depends on whether the terms of the contract contemplate surviving a change in control of the employer’s business. The answer can be found in an assignment clause contained within the contract. The language in an assignment clause often addresses whether rights and

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Are non-compete contracts legal in Virginia?

Are non-compete contracts legal in Virginia? Yes, non-compete contracts are legal in Virginia. However, 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 though the law has changed. Before employers can enforce a non-compete contract –

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Are non-compete contracts enforceable in Virginia?

Are non-compete contracts enforceable in Virginia? Yes, non-compete laws can be enforceable in Virginia, depending on the language of the contract, and what kind of employee the employer is trying to enforce it against. 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

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Virginia Government Contractor Enforces Non-Compete Contract

In Virginia, non-compete contracts are common among government contractors. There are a couple of reasons: The Supreme Court of Virginia enforcing a contractor’s non-compete agreement with a former subcontractor in Preferred Sys. Solutions, Inc. v. GP Consulting, LLC, 284 Va. 382 (2012), provides a cautionary tale set in the government contracting industry. The Court denied the contractor’s challenge to the enforceability of the

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Are non-compete contracts allowed in Virginia?

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, in certain instances.” Non-compete clauses restricting the employment of doctors, engineers, sales managers, and

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Do I have to sign a non-compete to keep my job?

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, depending on the circumstances.” Most employers will provide no incentive to sign

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Virginia Family Doctor Not Bound by Non-Compete Contract

Family Care Center, Inc., hired Dr. Nipun Parikh, M.D., to work as a family physician at its Lynchburg medical practice. In 1993, Dr. Parikh signed an employment contract which contained the following non-compete provision: Upon termination of employment for any reason and for a period of three years thereafter, Employee agrees to pay employer ten thousand dollars each month employee is engaged in a competing

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After Mass Resignation, Engineers Sued for Non-Compete Violations

A group of engineers resigned en masse to join a competitor. Before quitting, they copied client files. The employer sued for breach of the non-compete contract. The trial court awarded a multi-million dollar judgment in favor of the employer for lost profits, lost goodwill, and attorneys’ fees. On appeal, the engineers challenged whether the non-compete contract was enforceable. The Court denied their appeal and enforced the

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