Has your employer asked you to sign a non-compete agreement? You’re not alone. More and more companies require employees to sign these restrictive contracts as a condition of employment. But before you put pen to paper, understand the far-reaching implications a non-compete clause can have on your career. The experienced employment law attorneys at Surovell Isaacs & Levy PLC want you to know your rights regarding non-compete agreements.
What Are Non-Compete Agreements For?
Non-compete agreements, also known as covenants not to compete, restrict your ability to work for a competitor or start a competing business for a set period after leaving your job. Usually, they allow you to work in the same industry within a certain geographic area. Employers need these agreements to protect their trade secrets, confidential information, and customer relationships. But they can seriously limit your future job prospects and earning potential.
Virginia courts enforce non-compete agreements only if they meet certain legal standards. The restrictions must be narrowly tailored to protect the employer’s legitimate business interests. They must be manageable and manageable for the employee. Courts look at factors like the duration of the restrictions, the geographic scope, and the scope of activities prohibited. They balance the employer’s interests against the hardships of the employee and the public interest.
A non-compete that lasts for several years, covers an expansive territory, or prohibits you from working in an entire industry likely won’t hold up in court. One that extends for a few months, only covers the area where the company does business, and is limited to the specific type of work you did for the employer, alternatively, is reasonable and enforceable.
Some states, like California, prohibit non-compete clauses entirely, viewing them as unlawful restraints of trade. A few other states recently enacted laws limiting their use, especially for lower-wage workers. But Virginia still allows them in most industries. Only lawyers, certain healthcare professionals, and low-wage employees (those earning less than $1,290 per week) currently have legal protections against non-competes in Virginia.
What to Understand Before You Sign a Non-Compete
Before signing a non-compete, ask yourself:
- Do I fully understand the restrictions and how they could impact my future employment?
- Does the agreement seem narrowly tailored, or is it overly broad?
- Is the company offering me additional compensation or benefits in exchange for signing?
- Did I have a meaningful opportunity to review and negotiate the terms?
- Have I consulted with an attorney about the enforceability of the agreement and my options?
Remember, you have the most leverage to negotiate before starting a job. Once you sign a non-compete, you’re bound by its terms. So carefully consider the restrictions and how they align with your career goals. If the limitations seem unreasonable, negotiate a more narrowly tailored agreement. For example, see if you can limit the duration, geographic area, or scope of prohibited activities. If the company won’t budge, weigh the opportunity against the potential limitations on your future employment.
If you’ve already signed a non-compete and are considering leaving your job, consult an employment attorney. They can review the agreement, discuss whether it would be enforceable, and advise you of your options. You can negotiate a release from the non-compete, especially if you’re not going to a direct competitor. An attorney can also discuss whether your new employer will indemnify you if your old employer sues to enforce the agreement.
Violating a non-compete can lead to serious legal consequences. Your former employer can sue you for monetary damages and get a court injunction prohibiting you from working for a competitor. This can cost you your new job. Some agreements also require paying the employer’s legal fees if you breach the contract. Pay attention to a non-compete; don’t assume it won’t be enforced.
Consult with a Skilled Employment Attorney
If you need help understanding, negotiating, or challenging a non-compete agreement, the knowledgeable employment attorneys at Surovell Isaacs & Levy PLC stand ready. We can review your agreement, explain your options, and advocate for your interests. Contact us today for a consultation to discuss your concerns about non-competence. Protect your career and know your rights.
Posted in: Business Law, Employment Law