Wednesday, September 1, 2010

Virginia Judge Voids Non-compete, Enforces Non-solicitation Provision in Employment Agreement

Virginia Judge Voids Non-compete, Enforces Non-solicitation Provision in Employment Agreement


Settling the dispute between IT professionals and their former employer in Daston Corp. v. MiCore Solutions, Inc., Fairfax Circuit Judge Michael F. Devine held a non-compete provision in an employment agreement void while also holding the agreement’s non-solicitation provision enforceable. The judge found the non-compete too broad, because it prohibits the IT professionals from providing their cloud computing services to anyone in the United States for one year following termination. However, the judge found the non-solict to be no broader than necessary for protecting the employer’s “legitimate business interest,” because it merely limited the solicitation of the employer’s prior and current clients for two years.

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