VIRGINIA AND NON-COMPETE CONTRACTS
The citizens and businesses in Virginia are eagerly awaiting rulings by the Virginia Supreme Court on the enforceability of non-compete provisions in employment agreements. Presently, these types of restrictions are legal and enforceable in Virginia…in limited circumstances.
As reported in the Washington Post, the Court is preparing to hear two cases that could affect virtually every business in the state that wants to hire employees away from industry competitors, and every worker mulling a move to a competing employer.
The cases, both arising from disputes between local employees and businesses, raise questions about whether courts can enforce non-compete agreements, provisions in employment contracts that often prohibit workers from soliciting customers from a former employer once they have jumped ship to a competitor.
My Take: I am hopeful the two cases, Home Paramount Pest Control Cos. Inc. v. Justin Shaffer, et al. and BB&T Insurance Services v. Thomas Rutherfoord Inc., will do away with the viability of non-compete and non-solicitation agreements. In my opinion, these types of restrictions greatly harm our economy and inhibit innovation.
We will share (and discuss) the Virginia Supreme Court’s decisions when they become available.