A covenant not to compete typically implies that a West Virginia employee makes an agreement not to work for any of their employer's competitors should they leave the company for any reason. These covenants are typically called "non-compete clauses". An employee who signs a covenant not to compete can receive compensation for the agreement, or in some cases the agreement is a condition for their being hired.

When are Covenants not to Compete Unenforceable?

Whether a given judge will enforce a non-compete agreement is difficult to discern in advance. While employer's interest are important, the courts of West Virginia also put a high level of importance on a person's ability to pursue their desired employment opportunities. Consequently, a court will generally only uphold non-compete clauses which under the circumstances are considered to be reasonable. Some provisions that courts have considered to be unreasonable include terms that last for an unusually long period of time or that cover a geographic around Elkins that is unreasonably broad.

Non-compete clauses are also limited in that they may only apply to competitors who are rationally related to the industry of the employer. Finally, the employer needs to have an acceptable business purpose which justifies their motives in requiring their employee to sign a covenant not to compete.

Do I Need an Attorney when Dealing with a Covenant not to Compete?

Before you sign any agreements that could restrict your rights, you may consider hiring an Elkins, West Virginia attorney who can review the covenant. The attorney can negotiate modifications to the contract if they are needed, and can draft a new clause which is acceptable to the parties involved. An attorney can also give valuable advice when it comes to suing employees for breaching covenants, or counseling employees who have signed one regarding whether they can accept a different job.