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Damages for Breach of a Non-Compete in Virginia

When an employee breaches an valid non-compete contract, the employer is entitled to damages and other relief.

Employers have several options: preliminary injunction, permanent injunction, lost profits, liquidated damages, and attorneys’ fees.

Here is a summary of the damages that an employer is allowed to recover under Virginia law in non-compete cases.

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What Happens to a Non-Compete After a Merger?

Many employees wonder, “If I sign a non-compete contract with a company, and later, the company is purchased by a different company, is my non-compete null and void?”

Maybe. It depends on the terms of the employment contract if a non-compete survives the merger.

The answer can be found in the contract itself. Look for an assignment clause. Is there any language explicitly assigning . . .

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Help, My Employer Threatened Me With a Non-Compete Contract!

Are you here because your employer threatened you with a non-compete contract?

Let me guess how this conversation went. You were offered a new job. Or, you have been working at your job for a while now, and your boss walked into your office and plunked it down on the table.

In either scenario, you were probably told something to the effect . . .

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Are non-compete contracts legal in Virginia?

Are non-compete contracts legal in Virginia?

Yes, non-compete contracts are legal in Virginia.

But as ESPN’s Lee Corso says on College Football Gameday, “Not so fast, my friend!” Just because non-compete contracts are legal does not mean that every non-compete contract will be enforced.

In fact, many employers use poorly written, formulaic non-compete clauses in employment contracts that have never been updated – even . . .

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Are non-compete laws enforceable in Virginia?

Are non-compete laws enforceable in Virginia?

Yes, non-compete laws are enforceable in Virginia.

Many employers regularly require key employees to sign non-compete contracts. Virginia law allows it.

But not every non-compete contract is enforceable. 

Under Virginia law, a non-compete must be reasonably limited in duration, function, and geographic scope. Otherwise, if it is overbroad, then it is likely unenforceable and invalid.

A contract that prohibits the . . .

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Virginia Government Contractor Enforces Non-Compete Contract

In Virginia, non-compete contracts are common among government contractors. There are a couple of reasons:

No contractor wants to invest time and resources to win a bid, only to lose key personnel to a competitor.
Government contracts involve trade secrets. Non-compete clauses protect the company’s proprietary information.

Given their importance, it was not surprising to see the Supreme Court of Virginia enforce a contractor’s non-compete clause . . .

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Are non-compete contracts allowed in Virginia?

Perhaps you moved to Virginia to accept a job. Or, you grew up in Virginia, but you have recently been offered a position with a company that requires a “non-compete” contract as a condition of employment.

Now, you are wondering, “Are non-compete contracts allowed in Virginia?”

The answer is “yes.” Non-compete clauses restricting the employment of doctors, engineers, sales managers, and other executive-level . . .

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Do I have to sign a non-compete to keep my job?

In order for a contract to be enforceable under Virginia law, it must be secured by consideration, a legal term for something of value offered in exchange for the employee’s promise not to compete.

So is “keeping your job” sufficient consideration under Virginia law to make a non-compete contract enforceable?

The answer is “Yes.” Most employers will provide no incentive to sign the non-compete, except, . . .

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Virginia Family Doctor Not Bound by Non-Compete Contract

A physician signed a non-compete with a medical practice. Later, the practice’s sole shareholder, a physician, passed away. Thereafter, the practice ceased operating as a professional corporation and began operating a non-professional corporation.

On appeal, the Supreme Court of Virginia held a non-professional corporation has no standing, and no competitive interest, to enforce a restraint on trade against a physician, and found in . . .

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After Mass Resignation, Engineers Sued for Non-Compete Violations

A group of engineers resigned en masse to join a competitor. Before quitting, they copied client files.

The employer sued for breach of the non-compete contract. The trial court awarded a multi-million dollar judgment in favor of the employer for lost profits, lost goodwill, and attorney’s fees.

On appeal, the engineers challenged whether the non-compete contract was enforceable. The Court denied their appeal and enforced . . .

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