West Virginia Noncompete Agreement: What's Included and Enforceability

Quick Facts — Noncompete Agreement Lawyers

Is a Non-Compete Agreement Enforceable in West Virginia?

Yes. In West Virginia, non-compete agreements are permitted and enforceable as long as the contract adheres to certain restrictions.

The restrictions set by the West Virginia Supreme Court include:

  1. The restrictions in the non-compete agreement can be no greater than required to protect the employer.
  2. The terms cannot impose undue hardship on the employee.
  3. The limitations cannot be injurious to the public.

In addition to these restrictions, non-compete agreements must be reasonable. Courts will look at the specific circumstances to determine reasonability. The following factors are often heavily considered:

  • Duration of the agreement
  • Geographic area restricted by the agreement
  • Activities prohibited by the agreement

How Long Does a West Virginia Non-Compete Agreement Last?

Courts will generally consider the duration of the non-compete agreement along with the geographical boundaries to determine if the restrictions are reasonable. The rule typically is that the longer the duration, the smaller the geographic area must be and vice versa.

How Do You Get Around a Non-Compete Agreement in West Virginia?

One way an employee can get around a non-compete agreement in West Virginia is to prove that the agreement does not cover a “protectable employer interest”. These interests must be trade secrets or confidential information that the employer has taken steps to keep confidential.

If an employee was a manager or supervisor who only participated in purchasing duties, advertising, or sales, a non-compete agreement will not be enforced. These types of skills and information do not fall under the category of protectable interests.

What Voids a West Virginia Non-Compete Agreement?

A non-compete agreement in West Virginia will be void if it is not supported by consideration. Courts in West Virginia have determined that continued employment is not adequate consideration and new consideration is required when signing a non-compete. New consideration can be a raise, a promotion, or other benefits.

Frequently Asked Questions

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Morgan S. on ContractsCounsel
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Morgan S.

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Corporate Attorney that represents startups, businesses, investors, VC/PE doing business throughout the country. Representing in a range of matters from formation to regulatory compliance to financings to exit. Have a practice that represents both domestic and foreign startups, businesses, and entrepreneurs. Along with VC, Private Equity, and investors.

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Employer

Noncompete Agreement

Connecticut

Asked on Jul 13, 2023

Can a noncompete agreement be waived?

I am a small business owner in the retail industry and I am looking to hire a new employee. The employee has a noncompete agreement with their previous employer that I am concerned about. I want to know if it's possible for the agreement to be waived so that I can be sure I'm making the right decision in hiring this employee.

Thomas L.

Answered Jul 21, 2023

Yes, the parties to contracts can always agree to amendments and waivers. However, the former employer may have no interest in waiving the contract in this particular situation.

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Asked on Dec 5, 2024

Can my employer enforce a non-compete agreement I signed even though I was not provided any additional compensation or benefits in return?

I recently started a new job and was asked to sign a non-compete agreement as a condition of employment. However, I just found out from a colleague that my employer has been enforcing the non-compete agreement against former employees and preventing them from working in similar roles at competing companies. I am concerned because I was not given any additional compensation or benefits in exchange for signing the agreement, and I believe it may be unfair and potentially unenforceable. Can my employer legally enforce the non-compete agreement even though I did not receive any additional compensation or benefits in return?

Damien B.

Answered Dec 6, 2024

Hello! Generally, New York courts require that a non-compete agreement be supported by adequate consideration. If the agreement is signed at the beginning of employment, the job itself may serve as adequate consideration. However, if the non-compete is signed after employment begins, the employer may need to offer additional benefits, such as a raise or promotion, for the agreement to be enforceable. There are other defenses against enforcement. For a non-compete agreement to be enforceable, it must be reasonable in terms of duration, geographic scope, and the scope of activities it restricts. A court will evaluate whether the agreement is necessary to protect the employer’s legitimate business interests, such as confidential information or customer relationships. If not, a court could rule the noncompete is not enforceable.

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The non-compete agreement will likely specify the non-compete period/time restriction. If that is not obviously stated, you should consider having an attorney review the non-compete agreement. Typically, a non-compete agreement in a partnership or LLC places a geographic limitation for a certain time period such that the partner/member is prevented from carrying-on a similar business in a geographic area where the partnership/LLC has done and continues to do business. You can read more about non-compete agreements in California here: https://www.contractscounsel.com/t/us/noncompete-agreement/california.

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Answered Aug 4, 2023

The one thing to make sure with noncompete agreements is that it is reasonable in terms of duration and the area you cannot compete in. Courts use a reasonableness test to determine whether a noncompete agreement is valid. If provisions are deemed to be unreasonable and fail the test, they could be altered or struck out of the agreement.

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You may be able to be released from a non compete. You would have to review the language in the non compete to see the expiration. DISCLAIMER The answers to these questions do not constitute legal advice and does not create an attorney-client relationship with the attorney and anyone who reviews these responses.

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