The 2026 Virginia General Assembly session again resulted in numerous pieces of employment legislation being enacted that will impact Virginia employers. Covering a wide variety of topics ranging from restrictive covenants, pay transparency, and discrimination protections, there are numerous new laws, many taking effect on July 1, 2026, that are relevant to Virginia employers.
Restrictive Covenants and Non-Competes
In the past several years, we have seen significant movement in Virginia to limit the scope of restrictive covenants and non-compete agreements.
- In 2020, Virginia enacted § 40.1‑28.7:8, which prohibited employers from entering into non-compete agreements with “low wage employees.” A “low wage employee” is an employee earning below the average weekly wage in Virginia as published by the Virginia Department of Labor and Industry (DOLI). As of calendar year 2025, the average weekly wage is $1,507.01, equating to a yearly salary of $78,364.52.
- In 2025, Virginia expanded the scope of § 40.1‑28.7:8 to now also include all non-exempt employees (i.e., those eligible for overtime).
- In 2026, two additional laws were passed. You can read about the new Virginia legislation impacting healthcare providers in the article written by my colleague Michael Garrison. The second piece of legislation, Senate Bill 170, again amended § 40.1‑28.7:8. Effective with agreements executed on or after July 1, 2026, SB 170 makes non‑competes unenforceable against employees who are discharged...
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