Virginia continues to narrow the enforceability of employee non-compete agreements. Beginning July 1, new legislation significantly expands protections for workers, limiting when employers may enforce post-employment non-compete restrictions.
For employees, these changes alter not only whether a non-compete applies, but also what rights exist if an employer attempts to enforce one. Understanding how these rules work is essential for anyone entering, reviewing or exiting an employment agreement in Virginia.
Virginia law already places substantial restrictions on non-compete agreements for certain categories of workers. Employers are prohibited from entering into, enforcing or threatening to enforce non-compete agreements against “low-wage employees.” This category includes:
These restrictions already apply regardless of whether the employee signed a non-compete agreement. In many cases, such agreements are void as a matter of law.
Now, a non-compete agreement will generally be unenforceable if the employer terminates the employee without cause, and the employee does not receive severance pay or other monetary compensation tied to the...
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