Create a Virginia Non-Compete Agreement with our customizable template!
A Virginia non-compete agreement is a type of employment agreement using restrictive covenants that limits an employee's ability to work in certain capacities after their employment relationship ends. The purpose of a non-competition agreement is to ensure that the individual doesn’t disclose trade secrets, endanger existing client relationships, and otherwise create a potentially unfair risk to the employer's legitimate business interests.
The use of non-compete agreements is legal in Virginia, and the state will enforce them should an employee break such an agreement. Nevertheless, an employer should ensure that the demands of a non-compete are reasonable and drafted with valuable consideration.
A non-compete agreement may stand on its own as a contract. When it does, it is commonly used along with a non-solicitation agreement and a non-disclosure agreement (also referred to as a confidentiality agreement) to better protect the employer's legitimate business interests. However, some employment contracts have a non-compete clause in them.
Instead of drafting a non-compete agreement on their own, employers should seek legal advice and rely on the know-how of a law firm that practices employment law. With a deep understanding of Virginia law, an attorney can ascertain the enforceability of the non-compete agreement in the event that a former employee must be sued in Virginia courts.
Many factors will be considered, such as public policy, geographic scope, and the duration of the restrictions. Virginia is not a blue pencil state, although there have been times when circuit courts have kept certain enforceable restrictions. However, this highlights the need to have a knowledgeable lawyer on your side and not only rely on Google.
Hiring an independent contractor to work for your Virginia business? Download an independent contractor agreement form now!
In Virginia, non-compete agreements may protect trade secrets, confidential information, knowledge of operational methods, protection from unfair competition, and protect customer contracts. However, as a former employer, the agreement must only be as broad as necessary to protect legitimate business interests. It cannot be unnecessarily burdensome in geographic scope or time. It must adhere to sound public policy as well. In short, the former employee still must be able to earn a living.
Protect your Virginia business by also using a Virginia non-disclosure agreement form. Download a Virginia non-disclosure agreement form now!
To write a Virginia non-compete agreement, include the following clauses:
The employer and the employee must sign and print their name. Their signatures must be dated. Each party should receive a copy of the finalized agreement for their records.
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