Virginia has further expanded its restrictions on post-employment non-compete agreements. In addition to the existing categorical ban on the use of non-competes with “low-wage employees,” the new legislation, which was signed into law by Governor Abigail Spanberger on April 13, 2026, creates a new condition on entering into non-compete agreements with all other employees.
Under the new law, a post-employment covenant not to compete between an employer and an exempt employee is not enforceable if the employer terminates the employee’s employment without cause unless the employer provides severance benefits or another form of monetary payment to the employee and discloses that compensation at the time the covenant is executed.
These new restrictions apply only to non-compete agreements entered into, amended, or renewed on or after July 1, 2026. They are not retroactive.
Virginia’s Existing Non-Compete Ban for Low-Wage Workers
Under existing Virginia law employers are prohibited from entering into post-employment non-compete agreements with “low-wage employees” (i.e., those earning less than $78,364.52 annually as of January 1, 2026) or, regardless of income, employees that are classified as nonexempt (i.e., entitled to overtime compensation) under the Fair Labor Standards Act. Virginia law defines “low-wage employee” to also include independent contractors whose hourly rate is less than the median hourly wage for Virginia, as well as interns, students, apprentices, or...
Anambra Court jails native doctor, Onyeze Jesus, for false claims of supernatural powers By Vincent Ujumadu An Anambra State High Court sitting in Awka has sentenced a self-acclaimed prophet and na...