DOES YOUR NON-COMPETE STICK WHEN THERE IS A NEW OWNER?
This is not news to anyone, but sometimes, companies change hands. They are sold, bought, liquidated, assets are sold and corporate structures change.
In the middle of a merger or sale, you may be asked to sign a new non-compete or new employment contract.
Or, if you are lucky, they may forget and you find yourselves with a new boss and no new non-compete.
So, what does that mean for you?
- Is your old non-compete still valid after corporate change?
- Are you bound by the old provisions?
- Can you refuse to sign a new one and keep your job?
- Should you ask for your old personnel file before the company changes hands?
All good questions. All have different answers depending on your situation. As is the case with most employment contracts, the answers depends a great deal on (1) your individual contract; (2) the type of corporate change; (3) and the common law of the state where the contracts were entered into.
If you have questions about corporate structure change and you have a non-compete in Virginia, we are happy to help.