Legal Question in Employment Law in Virginia
Unable To Seek Employment in Any Capacity Due To Non-Compete
Very complicated. I'm a shareholder and was required to sign a non-compete to buy into the partnership. I was terminated due to ''disloyalty'' for questioning agency practices. Disloyalty is the one and only stipulation holding me to the non-compete. I am a well renowned therapist in the state of Virginia. Upon termination, I was working an active case. Ethically and legally, I am under obligation to put closure to this case, but to do so I would be violating the terms of the non-compete. I am unable to provide services to those in need. There are under 1000 Family Therapists in the state. In addidion, I am required to apply for 2 jobs per week IN MY FIELD and to do this, I would also be vioating the non-compete, thus, I cannot seek employment. The non-compete will not allow me to work in ANY capacity in my field within 50 miles of my home. There is also a great deal of money owed to me by my partner, which he says he doesn't have.
1 Answer from Attorneys
Re: Unable To Seek Employment in Any Capacity Due To Non-Compete
Under Virginia law the covenant not to compete
must be reasonable under a three prong test:
Reasonable in the sense that it is no greater
than necessary to protect the employer's
interests;
Reasonable in the sense that it
is not unduly onerous in limiting
the employee's ability to earn a
living;
Reasonable from the perspective of
sound public policy (See Richardson
v. Paxton Co. 203 Va. 790, 127 S.E. 2d
113 (1962).
To further complicate matters, the three essential components of the noncompete agreement: geographical area, duration, and functional limitation(that is, the kind of business and the type of job within that business which the employee is excluded from) must then be evaluated under each of three pronged tests of reasonableness referenced above.
The Virginia Supreme Court has repeatedly ruled that noncompete covenants are to be judged on a case by case basis. (See Modern Environments, Inc. v. Stinnett, 263 Va. 491, 561 S.E. 2d 694(2002)and stated that a "reasonable" covenant
will be upheld. It, unfortunately, however, remains a virtual truism that it is almost impossible to draw up a noncompete agreement with any degree of confidence that it will pass muster with these various tests of "reasonableness" described above.
From your brief description of your particular noncompete, I would surmise that on its face it would not appear to be any exception to the above caveat, and many more facts would be needed and
further analysis undertaken to even attempt a "reasonable" estimate as to the legal sturdiness of your particular noncompete agreement under current Virginia law.