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Tag: HB 1187

Virginia Code on Non-Competes? Not This Year

February 8, 2012

Yesterday, I traveled to Richmond – the “Capital City” – to testify (or rather, speak) in favor of HB 1187, which would make non-compete agreements invalid in Virginia.

A subcommittee of the Commerce and Labor Committee heard argument in favor of the bill (from me), and then two trade groups argued against it – the Virginia Chamber of Commerce and the Virginia Association of Broadcasters. The representative for the Virginia Association of Broadcasters stated that they could not spend money on promoting new personalities if there wasn’t some assurance that personality wouldn’t run across the street to the compeitior.

REALLY? And this is a statement of fact?

Predictably, the committee voted to table the bill.

Continue reading Virginia Code on Non-Competes? Not This Year

Why Non-Competes are Unnecessary

February 6, 2012

There is a tremendous letter to the editor in the Richmond Times Dispatch on HB 1187. Says Arlington resident Todd Benjamin:

After a non-compete sidelined me last year, I educated myself about these agreements and have become a staunch advocate for their elimination. … I believe in free markets: for products, for services and for labor. A non-compete agreement is, by definition, contrary to such American values. Restricting workers’ rights to pursue their careers goes against the self-determination on which our country was founded.

For those of you who have been faced with a non-compete, these sentiments will not be unfamiliar. For those who have not, but lean towards the right assuming that such agreements are necessary to protect business, I beg you to consider Mr. Benjamin’s well reasoned points.

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HB 1187: Virginia General Assembly Considers Non-Compete Law

January 23, 2012

This month, the Virginia General Assembly returns to work in Richmond. A reader contacted us about House Bill 1187 sponsored by Delegate Patrick Hope (D- Arlington) significantly restricting non-compete agreements throughout the state.

Here’s a summary of the pending legislation:

Non-competition agreements.  Makes unlawful any contract that serves to restrict an employee or former employee from engaging in a lawful profession, trade, or business of any kind. Exceptions are created for persons selling a business, former partners in a partnership, and former members in a limited liability company, who agree to refrain from carrying on a similar business within a specified geographic area in which the original entity carries on business.

Basically, the law would invalidate non-compete provisions as a matter of law in Virginia, with exceptions for business sales and partnerships.

Continue reading HB 1187: Virginia General Assembly Considers Non-Compete Law