Virginia Non Compete Law: Is Yours Enforceable? — Best Proven Guide (2026)

✓ Verified October 2026

Virginia non compete law restricts non competes by statute: virginia bars employers from entering, enforcing or threatening to enforce a non compete with a low-wage employee — anyone earning less than the state average weekly wage ($1,463.10 a week, about $76,081 a year, for 2025) or, since July 1, 2025, anyone entitled to overtime under the FLSA regardless of pay — or with a health care professional;

and since the current text, a non compete is unenforceable against any employee the employer let go without severance unless the discharge was for cause.

This guide gives the exact Virginia non compete law rule with the date we verified it, the threshold and carve-outs where they exist, what a court does with an overbroad term, and what to do if you signed one. Rules verified against the statute on 2026-10-08; confirm the current rule with Virginia Department of Labor and Industry, Labor and Employment Law Division or an attorney before you rely on it.

Advertisement

Virginia Non Compete Law at a Glance

Status Restricted by statute
Income threshold The Commonwealth’s average weekly wage as published each year by the Department of Labor and Industry ($1,463.10 a week for 2025), or any FLSA non exempt (overtime-eligible) worker regardless of pay; commission-based workers are excluded from the definition
Statute Va. Code 40.1-28.7:8
Notice / consideration Employers must post the statute or the DOLI summary where other notices are posted; a civil penalty of up to $10,000 per violation
Carve-outs Low-wage and overtime-eligible workers; health care professionals; interns, students, apprentices and trainees; workers discharged without severance (unless…
Overbroad terms void against covered workers (liquidated damages, lost pay and attorney fees); reasonableness test for everyone else
In effect since July 1, 2020; overtime-eligible ban July 1, 2025 (SB 1218); further 2025 amendment adds the severance rule

Is a Non Compete Enforceable Under Virginia Non Compete Law?

Virginia bars employers from entering, enforcing or threatening to enforce a non compete with a low-wage employee — anyone earning less than the state average weekly wage ($1,463.10 a week, about $76,081 a year, for 2025) or, since July 1, 2025, anyone entitled to overtime under the FLSA regardless of pay — or with a health care professional; and since the current text,

a non compete is unenforceable against any employee the employer let go without severance unless the discharge was for cause.

The statute is Va. Code 40.1-28.7:8. The carve-outs matter: low-wage and overtime-eligible workers; health care professionals; interns, students, apprentices and trainees; workers discharged without severance (unless for cause); customer non solicits remain allowed; the worker may sue within two years.

⚠ Under Virginia non compete law, a non compete is enforced only inside the statute’s limits — including an earnings threshold of The Commonwealth’s average weekly wage as published each year by the Department of Labor and Industry ($1,463.10 a week for 2025), or any FLSA non exempt (overtime-eligible) worker regardless of pay; commission-based workers are excluded from the definition. The words of your own agreement decide the rest — read them before you turn down an offer.

Virginia Non Compete Law at a Glance

Rules verified against the statute on 2026-10-08; confirm the current rule with Virginia Department of Labor and Industry, Labor and Employment Law Division or an attorney before you rely on it. The statute row is where to check it yourself.

Status Restricted by statute
What the rule says Virginia bars employers from entering, enforcing or threatening to enforce a non compete with a low-wage employee — anyone earning less than the state average weekly wage ($1,463.10 a week, about $76,081 a year, for 2025) or, since July 1, 2025, anyone entitled to overtime under the FLSA regardless of pay — or with a health care professional; and since the current text, a non compete is unenforceable against any employee the employer let go without severance unless the discharge was for cause.
Income threshold The Commonwealth’s average weekly wage as published each year by the Department of Labor and Industry ($1,463.10 a week for 2025), or any FLSA non exempt (overtime-eligible) worker regardless of pay; commission-based workers are excluded from the definition
Statute Va. Code 40.1-28.7:8
Notice or consideration rule Employers must post the statute or the DOLI summary where other notices are posted; a civil penalty of up to $10,000 per violation
Carve-outs Low-wage and overtime-eligible workers; health care professionals; interns, students, apprentices and trainees; workers discharged without severance (unless for cause); customer non solicits remain allowed; the worker may sue within two years
What a court does with an overbroad term void against covered workers (liquidated damages, lost pay and attorney fees); reasonableness test for everyone else
In effect since July 1, 2020; overtime-eligible ban July 1, 2025 (SB 1218); further 2025 amendment adds the severance rule

The Reasonableness Test Under Virginia Non Compete Law

Virginia courts disfavor non competes, read them narrowly against the employer, and make the employer prove the agreement is reasonable. A court looks at three things together: the type of work barred, the geographic area and the length of time.

It then asks whether the restriction is no broader than needed to protect a legitimate business interest, whether it is unduly harsh on the worker’s ability to earn a living, and whether it goes against public policy.

Virginia courts have generally upheld restrictions of about one to two years that cover only the same or similar work, for direct competitors, in the territory where the employee actually worked. Courts have commonly struck down clauses that bar work “in any capacity” for a competitor or cover unclear or far-reaching areas, and Virginia courts generally will not rewrite an overbroad clause to make it enforceable.

With an overbroad term the court will void against covered workers (liquidated damages, lost pay and attorney fees); reasonableness test for everyone else.

Virginia Non Compete Law If You Were Fired or Laid Off

Under a 2026 amendment (SB 170), effective July 1, 2026, if an employer fires someone without cause, a non compete signed on or after that date generally cannot be enforced unless the worker gets severance or other payment that was disclosed when the agreement was signed.

For agreements signed before July 1, 2026, Virginia case law does not set a clear rule based on whether the worker was fired or quit, so confirm with a Virginia employment lawyer.

What the Employer Must Give Under Virginia Non Compete Law

Employers must post the statute or the DOLI summary where other notices are posted; a civil penalty of up to $10,000 per violation A non compete is a contract, so the employer must give something for it — the job itself for a new hire, and in many states a raise, a bonus or a promotion for a current employee.

Non Solicit and Non Disclosure Agreements Under Virginia Non Compete Law

Agreements that bar a former employee from soliciting the employer’s customers or employees are judged by the same reasonableness test, but because they restrict less, courts tend to uphold them more often than broad non competes. Non disclosure agreements that protect trade secrets and confidential information generally do not limit where a worker can take a job, and they are usually the easiest of the three to enforce.

📨 Get Free Unemployment And Workplace Rights Guides Alerts

Free · No spam · Unsubscribe anytime

If You Already Signed One: Virginia Non Compete Law in Practice

Read the agreement closely for the length of time, the area, the kind of work it bars, the date you signed it and whether it applies after a firing or layoff. Before accepting a new offer, you may ask your former employer for a written release or a written confirmation that it will not enforce the clause.

A Virginia employment lawyer can review the agreement and the new job duties before you start.

An employer that believes a valid non compete was broken can ask a Virginia court for an injunction to stop the competing work and can sue for money damages it proves it lost. Virginia generally makes each side pay its own attorney’s fees, so the employer can recover fees only if the agreement says so.

The Federal Rule and Virginia Non Compete Law

The Federal Trade Commission adopted a nationwide non compete ban in 2024, but a federal court blocked it before it took effect and the FTC later withdrew its defense; as of October 2026 there is no federal ban in force, so Virginia non compete law controls. In 2026 the General Assembly passed SB 170, signed April 13, 2026 and effective July 1, 2026.

It generally makes non competes signed on or after July 1, 2026 unenforceable against workers fired without cause unless severance or other disclosed pay is given. A second 2026 bill, HB 627, also effective July 1, 2026, extended the prohibition to health care professionals, with limited exceptions.

Other Virginia Non Compete Law Rules to Know

Virginia courts generally do not “blue pencil,” meaning they will not trim or rewrite an overbroad non compete. If one part of the restriction is too broad, the whole covenant may fail.

Think your employer owes you money or broke the law?

A non compete is a contract question, and the answer turns on your own agreement’s words. Your state bar runs a lawyer-referral service that connects you with an employment attorney for a short, low-cost first consultation — find it through the American Bar Association referral directory. Free legal aid may also help if your income qualifies.

Virginia — the bottom line

  • Virginia non compete law is a statute with its own limits — the first thing to check is which side of the line your agreement falls on.
  • Under Virginia non compete law, an overbroad term is void against covered workers (liquidated damages, lost pay and attorney fees); reasonableness test for everyone else — the words of your own agreement decide more than the headline rule.
  • Virginia non compete law does not stop you from taking a new job in a different field or outside the restricted area — read the scope before you turn an offer down.

Frequently Asked Questions

Are non competes enforceable in Virginia?

Sometimes.

Virginia bars employers from entering, enforcing or threatening to enforce a non compete with a low-wage employee — anyone earning less than the state average weekly wage ($1,463.10 a week, about $76,081 a year, for 2025) or, since July 1, 2025, anyone entitled to overtime under the FLSA regardless of pay — or with a health care professional; and since the current text,

a non compete is unenforceable against any employee the employer let go without severance unless the discharge was for cause.

Is there an income threshold under Virginia non compete law?

The Commonwealth’s average weekly wage as published each year by the Department of Labor and Industry ($1,463.10 a week for 2025), or any FLSA non exempt (overtime-eligible) worker regardless of pay; commission-based workers are excluded from the definition

What does a Virginia court do with an overbroad non compete?

Void against covered workers (liquidated damages, lost pay and attorney fees); reasonableness test for everyone else.

Can my employer enforce a non compete in Virginia after firing me?

Under a 2026 amendment (SB 170), effective July 1, 2026, if an employer fires someone without cause, a non compete signed on or after that date generally cannot be enforced unless the worker gets severance or other payment that was disclosed when the agreement was signed.

I signed a non compete in Virginia and have a new offer — what should I do?

Read the agreement closely for the length of time, the area, the kind of work it bars, the date you signed it and whether it applies after a firing or layoff. Before accepting a new offer, you may ask your former employer for a written release or a written confirmation that it will not enforce the clause.

Official Virginia Sources & Resources

This Virginia non compete law guide was last verified against official Virginia sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.

More Virginia Workplace Rights Guides

Disclaimer: This guide is general information, not legal or financial advice. My Unemployment Rights is an independent educational resource, not a government agency and not a law firm. Final-paycheck deadlines, penalties and non compete rules change — every figure here carries the date we verified it. Confirm the current rule with your state labor department or a licensed attorney before you act.

Hurt at work before you lost the job? See whether workers comp or unemployment applies at Workers Comp Explained. Denied unemployment because you cannot work? Social Security disability may be the right program - start at Disability Claim Info. Lost income and worried about rent? Know your rights before an eviction notice arrives at Tenant Rights Info.