Overview
- SB 170, signed April 13, 2026 by Gov. Abigail Spanberger, expands Virginia’s limits on noncompete agreements after no‑cause terminations.
- Beginning July 1, 2026, any noncompete signed, amended, or renewed becomes unenforceable if a worker is let go without cause and did not receive severance or other monetary payment that was disclosed at signing.
- Employers face a $10,000 civil penalty per violation, a two‑year window for employee lawsuits with fee shifting, and fines for failing to post the required notice.
- The law keeps Virginia’s existing ban for low‑wage or Fair Labor Standards Act non‑exempt workers and leaves “cause” and “severance benefits” undefined, which sets up likely disputes over what qualifies.
- HB 627, signed the same day, bans noncompetes for specified licensed health‑care professionals, placing Virginia in a broader national move to tighten these covenants.