In Virginia, a covenant not to compete typically requires that, upon leaving the company, an employee agrees not to be employed by their employer's competitors. A covenant not to compete may also be called a "non-compete clause". Compensation may be paid for employees who sign the covenant, or at times the employment may be conditioned upon such an agreement.

When are Covenants not to Compete Unenforceable?

Foreseeing whether or not a judge will uphold a covenant not to compete is typically difficult. While the employer?s interests are important, Virginia courts place great importance on an individual?s freedom to pursue the employment they want. Accordingly, courts have only upheld those agreements that they consider reasonable under the circumstances. Terms contained in a covenant not to compete will be struck down by a court as unreasonable if they bind the employee for an excessively long period of time or if they cover an unreasonably large geographic area around Leesburg.

The agreements must also deal only with those competitors whose line of employment is rationally related to the previous employer's. Finally, an employer is required to have a valid business reason in its motivation for imposing a covenant not to compete on an employee.

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

A Leesburg, Virginia lawyer can help you review the covenant before you sign any agreements that might limit your rights. The lawyer can assist you in negotiating modifications or if needed, they can possibly draft a new agreement which will be acceptable to both parties. Employers can receive useful advice from an attorney should they decide to sue a worker for breaching a covenant, and employees who have signed such covenants can also benefit from a lawyer's counseling.