In Home Paramount Pest
Control Cos., Inc. v. Shaffer, 718 S.E.2d 762 (Va. 2011), the Virginia Supreme Court
was asked to rule on the validity of a non-compete agreement which prohibited
the defendant former employee, for two years, from:
Engage[ing] directly or indirectly or concern[ing] himself/herself in any manner whatsoever in the carrying on or conducting the business of exterminating, pest control, termite control and/or fumigation services as owner, agent…stockholder.
The Virginia Supreme Court affirmed the decision of the
circuit court finding that this restriction was facially over-broad because it
restricted defendant from working for any competitor, even in a capacity
completely different from that in which he worked for his former employer. The Court further noted that, on its face,
this language prohibited defendant from owning stock in a publicly traded
company which owned a pest control business.
The Court found that both these “sweeping prohibition[s]” exceeded plaintiff’s
legitimate business interests and unduly burdened defendant’s right to earn a
living.
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