Overview
- Virginia's SB 170, signed April 13, 2026, takes effect July 1, 2026 and blocks noncompete enforcement after a no‑cause firing unless the agreement discloses severance or other pay.
- Virginia leaves both the meaning of “cause” and any minimum severance amount undefined, and it allows employee lawsuits with potential penalties up to $10,000 per violation plus attorneys’ fees.
- Washington's SB 1155 voids nearly all noncompetes retroactively, treats many clawback or forfeiture terms tied to post‑employment competition as illegal restraints, and permits only narrow exceptions tied to a business sale.
- Washington still allows confidentiality and tightly tailored non‑solicitation clauses, with customer non‑solicits limited to relationships the worker developed and capped at 18 months, and it bans provisions that block accepting unsolicited business.
- Employers face new compliance steps that include auditing agreements, revising offer letters and equity or clawback terms, and providing broad notice in Washington by late 2027, with violations exposing them to at least $5,000 or actual damages plus attorneys’ fees and potential action by the state attorney general.