Create a Virginia Non-Compete Agreement with our customizable template!
A Virginia non-compete agreement is a type of employment agreement using restrictive covenants that limits an employee's ability to work in certain capacities after their employment relationship ends. The purpose of a non-competition agreement is to ensure that the individual doesn’t disclose trade secrets, endanger existing client relationships, and otherwise create a potentially unfair risk to the employer's legitimate business interests.
The use of non-compete agreements is legal in Virginia, and the state will enforce them should an employee break such an agreement. Nevertheless, an employer should ensure that the demands of a non-compete are reasonable and drafted with valuable consideration.
A non-compete agreement may stand on its own as a contract. When it does, it is commonly used along with a non-solicitation agreement and a non-disclosure agreement (also referred to as a confidentiality agreement) to better protect the employer's legitimate business interests. However, some employment contracts have a non-compete clause in them.
Instead of drafting a non-compete agreement on their own, employers should seek legal advice and rely on the know-how of a law firm that practices employment law. With a deep understanding of Virginia law, an attorney can ascertain the enforceability of the non-compete agreement in the event that a former employee must be sued in Virginia courts.
Many factors will be considered, such as public policy, geographic scope, and the duration of the restrictions. Virginia is not a blue pencil state, although there have been times when circuit courts have kept certain enforceable restrictions. However, this highlights the need to have a knowledgeable lawyer on your side and not only rely on Google.
Hiring an independent contractor to work for your Virginia business? Download an independent contractor agreement form now!
