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Employment Law Update: New Restrictions on Virginia Non-Competes Take Effect Next Month

Since 2020, Virginia has prohibited employers from having non-compete agreements with “low wage employees” who earn below the average weekly wage in Virginia. Last year, the Virginia General Assembly amended the “low wage employee” definition to include non-exempt employees entitled to overtime compensation for hours worked more than forty hours a week. On July 1, 2026, two new restrictions will take effect.

Senate Bill 170, signed into law by Governor Spanberger on April 13, 2026, prevents employers from enforcing non-compete agreements against employees they discharge without cause, unless the employer provides severance benefits or other monetary payment. The law does not provide for a minimum severance amount; however, severance must be disclosed when the non-compete is executed.

Senate Bill 128, signed by Governor Spanberger on May 14, 2026, prohibits employers from having or enforcing non-compete agreements with healthcare professionals. A healthcare professional is “any person licensed, registered, or certified by the Board of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work.” This law, however, does not apply to:
 

• Nondisclosure agreements protecting trade secrets or confidential information;
• Non-solicitation agreements that restrict the solicitation of the employer’s customers, if limited to: (i) solicitation for the purpose of providing the same or substantially similar products and services; and (ii) customers or prospective customers with whom the employee had material contact during their employment;
• Non-compete agreements in connection with certain sales of a business; or
• Provisions in employment agreements requiring repayment of the costs the employer spent to recruit, relocate, or train the employee, if the employee departs after being employed for fewer than five years.

Employers should ensure that any agreements entered into or renewed on or after July 1, 2026, comply with these new restrictions. Agreements executed before this date are not affected.

Please contact a member of Whiteford’s Labor and Employment team if you have questions about these changes or need assistance revising restrictive covenant agreements.

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The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.