Virginia employers face a significant wave of employment law changes in 2026 and beyond, with new requirements affecting compensation practices, restrictive covenants, workplace safety, leave obligations, and wage-and-hour enforcement. These developments will require employers to revisit existing agreements, policies, and compliance procedures.
Below is a summary of the key new laws, organized by effective date.
Expansion of Non‑Compete Restrictions
Virginia enacted two labor and employment bills this legislative session further restricting non‑compete agreements. Virginia first limited non‑compete agreements in 2020, when it enacted § 40.1‑28.7:8 to prohibit employers from entering into non‑competes with “low‑wage” employees—defined in 2026 as those earning less than $1,507.01 per week. In 2025, it expanded the definition of “low‑wage” employees to include non‑exempt employees.
1. Non‑Competes May Be Unenforceable Against Employees Fired Without Cause
Virginia enacted its first non‑compete restriction this session in Senate Bill 170 (SB170). SB170 amends § 40.1‑28.7:8, making non‑competes unenforceable against employees who are discharged without cause, unless the employer provides “severance benefits or other monetary payment,” which must be “disclosed upon execution” of the agreement. The law does not define “cause,” “severance benefits,” or “other monetary payment.” Nor does it require that the employee be compensated for the full duration of...
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