Legal Question in Business Law in Virginia

business monopoly

I work for a perfusion service company that is contracted to hospitals around the country. In my city they have 4 out of a possible 6 hospitals that would require my service. (we operate the heart lung machine during heart surgery) I had to sign a non-compete clause when I was hired but it was for a different company. The present company bought them out and acquired the staff. This non-compete clause stated I could not work within 200 miles of any business run by this previous employer. I have now learned that the present employer has put no restrictions on distance but says I cannot work anywhere that the present company MAY do business. Which non-compete clause do I abibe to? Is it legal that they can ask newly acquire staff from another company to sign a non-compete clause in 48 hrs or lose your job? Not knowing what your pay cut will be or benifits? With an occupation so small as to have only 3500 perfusionist in the country there are only so many places to work. I feel I'm trapped. Is there any defense to some business monopolizing the city like they have in Richmond?

the market like this?


Asked on 11/09/97, 2:23 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Va. Non-compete

In Virginia, non-compete clauses are allowed, although they are strictly construed againstthe employer. They have to be reasonable in both duration and geographic scope. If theyare not reasonable, the whole thing is tossed out.

Any place they "may" set up shop is arguably overbroad, but it may also be meaningless ifthere is no distance requirement. Any "place"could mean only the vey hospital where they dobusiness, not the city, region, or whatever.It's impossible to say without seeing the actual contract and knowing something aboutthe business, but you may have defenses to enforceability. But don't count on it.

Can they ask you to sign a new one before youare hired by the new company? Sure. If you sign it, that's the one you are bound by. If not, depending on the terms of the transactionbetween the companies you may or may not stillbe bound by the old one, but you are not bound by the new one. Can they "fire" (or not hire)you if you refuse to sign? Sure, unless you have an employment contract that precludessuch action (I presume you are not in a union).

Is monopolization a defense? Not under these circumstances.

Feel free to call if you wish to discuss this matter further.

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Answered on 11/09/97, 10:22 pm


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