Under recently enacted Virginia legislation, employers will be prohibited from enforcing noncompete covenants entered into, amended, or renewed on or after July 1, 2026, with employees who are terminated and not offered severance, unless the employees are discharged for cause.

• Virginia Governor Abigail Spanberger recently signed SB 170, which prohibits an employer from enforcing a noncompete covenant with an employee who is discharged and not offered severance, unless the employer discharged the employee for cause.
• The Virginia General Assembly passed a different bill to ban noncompete covenants with healthcare professionals, but the governor has not signed it yet.
• Virginia continues to limit the use of noncompete covenants with “low-wage” workers.

Senate Bill (SB) 170, which Governor Abigail Spanberger signed on April 13, 2026, amended Virginia’s law on noncompete covenants. SB 170 does not apply to covenants entered into before July 1, 2026.

Under the amended law, noncompete covenants will be unenforceable if an employer discharged an employee without providing severance pay, unless the employer discharged the employee for cause. As of July 1, 2026, any severance benefits or other monetary payments that will support enforcement of a noncompete covenant must be disclosed to the employee at the time the covenant is executed. The law is silent as to the amount of the severance benefits or other monetary payments that will be required.

The amended law does not change the...

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