Employers in Virginia should be aware of legislation that would make it even harder to enforce non-competes. This is the latest in a series of moves curbing such agreements in the state. Specifically, the Virginia House of Representatives passed a bill on March 4 that would limit an employer’s ability to enforce a non-compete agreement against laid off or fired employees, unless the termination is “for-cause.” The bill, which also passed the state Senate in early February, is now headed to Governor Abigail Spanberger – and we expect her to sign it into law. Here’s what employers in Virginia need to know and a five-step action plan for compliance.
New Limit on Enforceability
If signed into law, SB 170 will void employee non-competes for workers who are laid off without severance or other compensation. According to the bill, this will apply to all involuntary terminations, except in “for-cause” terminations. These restrictions would apply to all non-compete agreements signed on or after July 1, 2026.
Many employers incorporate non-compete agreements into their new hire process for certain employees, but they may not provide severance if the employee is terminated. Under the new law, non-competes that were entered into pre-hire or during employment will not be enforceable against the terminated employee unless they receive severance or other compensation.
The amount of severance that will constitute adequate consideration is not defined, and it remains to be seen how courts...
A bitter legal battle at JPMorgan Chase has taken another dramatic turn after executive Lorna Hajdini filed a defamation lawsuit against former banker Chirayu Rana, accusing him of making up false...