Legal Question in Business Law in Virginia
Non-compete
I have been approached by a company in a similar industry to the one I work in now. The company I work for now does not have a competing product to the new company that I have been approached by, but the new company wants me to work in the same territory that I work in now. I signed a non-compete not to work with a competing company and not work with the same customers. In my new job I would only have 20% crossover of customers. Because my job is so specific I am having a hard time finding work outside the area because of my strong contacts in the area from this job and my previous one. Companies see value in the relationships I've established here, not elsewhere. I've spent 3.5 years building these relationships (3 with my first employer and .5 with my present employer). Should I be worried about the non-compete I signed if I land this new job.
2 Answers from Attorneys
Re: Non-compete
Yes, you should pay very close attention to this,
and your new employer would have to worry about it
as well.
However, a non-compete is not enforceable to the extent that it prevents you from making a living.
It must be narrowly drawn to only what is
reasonable and necessary.
The non-compete is probably enforceable to prevent
you from selling a competing product in the same
region.
However, the non-compete is probably NOT
enforceable to stop you from selling a different
non-competing product to the same customers.
The law will not allow a non-compete to stop
you from earning a lawyer.
To the extent that the non-compete covers ALL
products, it would be held as unreasonably over-
broad and unnecessarily over-broad, and would
be void to that extent.
You should document very clearly and carefully
all of your efforts to find another job, because
this is a very important factor in the legal
questions. If you cannot find another job, then
the non-compete would NOT be enforceable, because
it is against public policy (in the law) to
keep you from earning a living. So that is very
important.
However, I doubt you would be able to sell a
competing product.
Also, of course, a non-compete must be limiited
in time. So it can only continue for maybe
two years.
I agree with my colleague that you should have
a lawyer look at it, and would also be glad to
do so.
Re: Non-compete
You need to have a lawyer review the specific terms of your non-compete agreement to see if it covers the new job and if it is enforceable (many are overbroad and thus not enforceable). Each agreement and situation is different, so there is no general answer to your question.
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