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.


Asked on 10/11/05, 11:11 pm

2 Answers from Attorneys

Jonathon Moseley Jonathon A. Moseley

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.

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Answered on 10/15/05, 9:43 am
Daniel Press Chung & Press, P.C.

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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Answered on 10/11/05, 11:37 pm


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