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Friday, October 9, 2026

Virginia Court Rejects Massachusetts Noncompetition Agreement Act - The National Law Review

Several states over the past few years have passed legislation prohibiting the use in noncompete agreements (and other employment-related agreements) of out-of-state choice-of-law and forum selection provisions. A few of these states’ laws include enforcement mechanisms with stringent penalties, such as California, which provides for injunctive relief and attorneys’ fees to an aggrieved employee; Washington, which entitles aggrieved employees to actual damages or statutory penalties of $5,000, as well as their attorneys’ fees; and, beginning in August, Colorado, where any violation of that state’s noncompete statute (including the prohibition on out-of-state choice-of-law and forum selection provisions) could lead to civil and criminal penalties.

Other states, however, such as Massachusetts and Illinois, have no such enforcement mechanisms for violations of their statutory prohibitions of out-of-state choice-of-law and forum selection provisions. Thus, while an employee may prevail within those states on an argument that an out-of-state choice-of-law or forum selection provision is void, they would not be entitled to any damages or attorneys’ fees. Employees in these states must, therefore, rely on a court in another state to cede its own state’s sovereignty to the legislature of the employee’s home state. There may be little incentive for courts to do so under principles of federalism and state sovereignty. Why should a Virginia court let the Massachusetts legislature...



Read Full Story: https://www.natlawreview.com/article/virginia-federal-court-rejects-massachus...