It is important for employers to warn against not using or attempting to impose customers, but for employers to be able to require low-wage workers to enter into insuranceinates or confidentiality agreements to protect the company`s business secrets and confidential information. In Greenbrier Obstetrics – Gynecology, P.C., Leao, a physician, entered into an employment contract with Greenbrier. The agreement provided that “this contract may be terminated in writing by EMPLOYEE or EMPLOY without further commitment after sixty (60) days in advance.” The employment contract also included an agreement not to compete, which stated “for a period of two (2) years after the termination of employment… EMPLOYEE must not, directly or indirectly, possess, manage, participate, be or maintain an interest in this practice within 20 (20) miles of the current EMPLOI office. Leao ended his employment with 60 days` notice. Leo then ruled that the competition agreement was null and for all. The Virginia Supreme Court found that there was a blurring between the provisions of the agreement because of the language “no other commitment” and then the obligation not to compete. The Tribunal interpreted the ambiguity in favour of the worker and found that Leao`s 60-day notice was closed with the entire agreement, including the non-competition clause. When an employer proves that the former employee has breached a non-compete agreement in force, the Virginia courts may grant the employer a financial and/or subjective remedy. For example, a court is more likely to authorize the broader geographic application of a non-competition agreement if it persists for a short period of time or if the employer awards the worker a significant consideration, such as a high cash payment. How should employees assess a non-competitive agreement? First, they should read it and make sure they understand and how it might affect them if they left their potential employer.
What specific activities are prohibited? How long does the Confederation last and in what geographical areas does it apply? It is unfortunate that many workers only read their employment contract and/or a restrictive contract if they are considering leaving a company or after leaving a company.