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Restrictive Covenants

Virginia Federal Court Enforces Non-Compete Agreement

As a general rule, Virginia courts are reluctant to enforce non-compete agreements because they are disfavored restraints on trade. However, when the agreements are narrowly tailored, restrictive covenants will be enforced. A recent decision from the United States District Court for the Eastern District of Virginia provides good guidance as to what type of agreement […]

Financial Firms Revisiting Approach to Restrictive Covenants

Many business owners utilize some forms of restrictive covenants when hiring employees.  Whether it is to protect trade secrets or customer lists, or to ensure that sensitive information remains confidential, employees routinely execute agreements barring them from competing with their former employer, soliciting their former employer’s clients, or taking certain information with them when they […]

Case Dismissed: Judge Rules Allied Fire Can’t Compete in Court

A case decided this week by a Maryland federal court highlights the importance of careful drafting when it comes to non-compete agreements. Allied Fire Protection, Inc. v. Huy Thai, No. 17-551 (D. Md. 10/2/17).  In this case, Allied Fire Protection sought to enforce such an agreement when defendant Thai, a high-level employee, left to join […]