Are employers allowed to require employees to sign a non-compete agreement?
In West Virginia, employers are allowed to require employees to sign a non-compete agreement. This agreement is designed to protect the employers’ trade secrets, confidential information, and goodwill. Non-compete agreements are also used to protect the employer from unfair competition. Such agreements restrict an employee’s ability to work for a competitor or to start their own competing business after leaving the company, usually for a specified period of time. While West Virginia does allow employers to require employees to sign non-compete agreements, the West Virginia Supreme Court recently held that such agreements must be reasonable in scope and period. This means that the agreement can not be overly broad and can not last more than two years from the date of termination. The Court also held that employers must provide some type of consideration to the employee in exchange for signing the agreement. In conclusion, employers in West Virginia are allowed to require employees to sign a non-compete agreement, but such agreements must be reasonable and the employer must provide some type of consideration to the employee in exchange for signing the agreement.
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