The Virginia non-compete & non-solicitation agreement is an instrument that prevents employees from engaging in specific activities both during their term of employment and for a period after their working relationship is terminated. When an employee signs the agreement, they’re indicating their compliance with the employer’s restrictions on the solicitation of customers, other employers, and contractors working for the employer. In addition to the non-solicitation clause, the agreement also imposes a non-compete provision which prevents the employee from engaging in activity that may be detrimental to the employer’s legitimate business interests (e.g., disclosing company secrets, operating for competing businesses).
Laws – No Statutes. However, Virginia case law has determined that a non-compete & non-solicitation agreement can be enforced if it meets the following terms (see Paramount Termite Control v. Rector, 238 Va. 171, 174 (1989)):
- Employee restrictions are reasonable and extend no further than what is needed to protect the legitimate business interests of the employer.
- The restrictions are not excessively harsh or oppressive in limiting the individual’s capacity to seek other employment or earn a livelihood.
- The agreement complies with public policy.
Non-Compete Limit – No statutory defined limit.
Non- Solicitation Limit – No statutory defined limit.