IS YOUR NON-COMPETE ASSIGNABLE / TRANSFERABLE?

IS YOUR NON-COMPETE ASSIGNABLE / TRANSFERABLE?

IS YOUR NON-COMPETE ASSIGNABLE / TRANSFERABLE? 150 150 Lauren Ellerman

Lets say your boss sells the business. Or, lets say he starts a new business and you become an employee of that.

Is your original agreement, with the original company, still binding on you?

We are asked this question often.

Under Virginia law, the answer is – IT DEPENDS.

Does your contract state it is assignable? If so, and you have agreed to it being assigned to a new company, then yes, you may likely be bound by the terms.

If however you did not agree for the contract to be assigned, and the new company sues, your first defense is “JUDGE – they don’t have standing to sue me. I didn’t sign a contract with those people and my contract is not assignable absent my permission under Virginia law.”

It’s a good strategy. Let us know if you need help!

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About the author

Lauren Ellerman

Since 2020, Lauren Ellerman has been named top 100 lawyers in Virginia and top 50 female lawyers by Superlawyer. To speak with Lauren, email her at lellerman@frithlawfirm.com.

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