Fairfax Non-Compete Agreement Litigation Attorneys

Knowledgeable Non-Compete Agreements Lawyers Helping Businesses in Fairfax, VA

Non-compete agreements can be essential for many businesses, since they can protect against unfair competition. When disputes arise regarding whether an agreement is legally valid or whether a former employee has violated an agreement, the assistance of an experienced attorney will be needed to ensure that these issues will be handled correctly. At Fox & Moghul, our business litigation lawyers can provide experienced representation for both employers and employees when resolving concerns related to non-compete agreements.

Virginia Non-Compete Law: What Makes an Agreement Enforceable?

In Virginia, the enforceability of a non-compete agreement is determined by a three-part test:

• From the Employer's Perspective: The restriction must be no broader than is needed to protect the legitimate business interests of the employer. Courts will closely examine whether the restriction is tailored to protect trade secrets, client relationships, or other proprietary information.
• From the Employee's Perspective: The restriction must not be overly harsh or oppressive, preventing the employee from earning a livelihood. Courts will consider whether the restriction unreasonably limits the employee's ability to work in their chosen field.
• Public Policy: The agreement must be reasonable from a public policy standpoint, ensuring that it does not stifle competition or innovation within the industry (Paramount Termite Control v. Rector (1989); New River Media Group, Inc. v. Knighton (1993)).

The burden of proof lies on the employer to show that the non-compete agreement is valid and enforceable. Virginia courts evaluate these factors through the breadth of the activity being restricted, the limitations on the geographic areas where a person may work, and the amount of time the restrictions will remain in place (Home Paramount Pest Control Cos. v. Shaffer(2011)).

Duration and Geographic Scope in Non-Compete Agreements

One of the key considerations in determining whether a non-compete agreement is reasonable is the duration of the restriction. Under Virginia law, a durational limit of up to two years is generally considered reasonable, though courts may adjust this depending on the specific circumstances of each case.

Case Law on Duration:

• Simmons v. Miller (2001): The Virginia Supreme Court held that a three-year restriction was too lengthy because the agreement failed to provide specific details about the activities being restricted.
• James Ltd. v. Saks Fifth Ave., Inc. (2005): The court upheld a three-year non-compete that applied within a one-mile radius as reasonable, focusing on the geographic scope and the limited nature of the restriction.

Geographic scope is another critical factor. Virginia courts generally find restrictions enforceable when they are narrowly tailored to cover regions where the employer has legitimate business interests.

Case Law on Geographic Scope:

• In Tradestaff & Co. v. Lee (2004), the court ruled in favor of a non-compete restricting a former employee from working in construction staffing services across several states, as the employer had business interests in those regions.
• In Advanced Marine Enterprises, Inc. v. PRC, Inc. (1998), the Virginia Supreme Court allowed a restriction that prevented the employee from providing competing services within 50 miles of the employer, despite the employer's national footprint.

Restricted Activities: What Can Be Limited?

The type of activities restricted by a non-compete agreement is one of the most critical aspects scrutinized by Virginia courts. In order to be enforceable, the restriction must be closely tied to the activities the employee performed for the employer, and it should not be overly broad.

Case Law on Restricted Activities:

• Roanoke Eng'g Sales Co. v. Rosenbaum (1982): The Virginia Supreme Court upheld a non-compete because it limited the restricted activities to those similar to the employee's role with the employer.
• Modern Environments, Inc. v. Stinnett (2002): The Virginia Supreme Court invalidated a non-compete because it did not detail the specific activities that were restricted, making it too broad and vague.

Notable Case Examples of Virginia Non-Compete Disputes

At Fox & Moghul, we have successfully represented clients on both sides of non-compete disputes in Virginia. Here are a few notable cases that illustrate our experience in this area:

• Blue Ridge Anesthesia & Critical Care, Inc. v. Gidick (1990): We successfully defended a vendor of medical equipment in a case where the court ruled in favor of a three-year non-compete, which limited the former employee's ability to work for competitors providing similar services. Our arguments focused on the tailored nature of the restriction, which allowed the employee to continue working in the medical field in a non-competitive role.
• Home Paramount Pest Control Cos. v. Shaffer (2011): Our team successfully argued against an overbroad non-compete in this case, where the court found the restriction to be unenforceable as it barred the employee from any involvement in the pest control industry, even as a passive investor.

Why Choose Fox & Moghul for Non-Compete Litigation?

Non-compete agreements are a vital tool for businesses, but they must be carefully crafted and reasonably limited to be enforceable. At Fox & Moghul, we understand the laws that affect non-compete agreements in Virginia, and we have successfully litigated on behalf of employers and employees alike. Our team ensures that non-compete agreements are compliant with Virginia case law and industry-specific standards.

Contact Our Fairfax, Virginia Non-Compete Agreement Enforcement Lawyers

Whether you are drafting a non-compete agreement, defending its enforceability, or seeking to challenge an unreasonable restriction, the experienced attorneys at Fox & Moghul are here to help. Contact us today at 703-652-5506 to arrange a consultation.