Are Non-Competes Enforceable in Virginia?
Last updated: 2026-10-07 · Verified against the statutes 2026-10-07
Pay threshold / worker limits
Void for low-wage, non-exempt and health care workers
Virginia employers may not enter into, enforce or threaten to enforce a non-compete with a 'low-wage employee' - anyone whose average weekly earnings are below the Commonwealth's average weekly wage (about $78,364 a year from July 1, 2026) or who is entitled to overtime under the FLSA - or, since July 1, 2026, with a licensed health care professional. For covenants entered into, amended or renewed on or after July 1, 2026, a non-compete is also unenforceable against an employee fired without cause unless the employer pays severance or another monetary payment disclosed when the covenant was signed. Violations carry a $10,000 civil penalty and a private right of action.
Check a non-compete
Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.
Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).
Allowed only with strict limits
Virginia allows this non-compete only if it meets the statute's conditions — check each item below.
- Virginia: Void for low-wage, non-exempt and health care workers. Va. Code 40.1-28.7:8
- Enter annual earnings — Virginia voids non-competes below $78,364. Average weekly earnings (last 52 weeks) below the Commonwealth average weekly wage: $1,507 per week from July 1, 2026 (VWC publishes $1,507.01; Va. Code 65.2-500(B) rounds to the nearest dollar), about $78,364 a year; $1,463.10 per week before July 1, 2026. Workers paid mainly by commission or incentives are excluded. Virginia Workers' Compensation Commission: Notice of 2026 Rates
- If employment ends by layoff or termination without cause: For covenants entered into, amended or renewed on or after July 1, 2026: unenforceable if the employer discharges the employee other than for cause without severance or another monetary payment disclosed when the covenant was signed. Va. Code 40.1-28.7:8
Other Virginia rules to check
- Notice and timing: Employers must post a copy or approved summary of the law with other required notices (warning, then up to $250 and up to $1,000 for repeat failures). Any severance that conditions enforcement must be disclosed at signing.
- Non-solicitation clauses: A non-compete may not bar a low-wage employee from serving a customer the employee did not contact or solicit. Health care professionals may be bound by narrow patient/customer non-solicits but must be free to tell patients where they now practice.
- If a court finds it too broad: No settled rule we could confirm.
- Penalties: $10,000 civil penalty per violation; employees may sue within 2 years to void the covenant and recover lost compensation, damages, liquidated damages and attorney's fees.
General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.
Virginia non-compete rules
- Employee pay threshold
- $78,364 Average weekly earnings (last 52 weeks) below the Commonwealth average weekly wage: $1,507 per week from July 1, 2026 (VWC publishes $1,507.01; Va. Code 65.2-500(B) rounds to the nearest dollar), about $78,364 a year; $1,463.10 per week before July 1, 2026. Workers paid mainly by commission or incentives are excluded.
- Contractor threshold
- Independent contractors paid an hourly rate below the BLS median hourly wage for Virginia (all occupations, preceding year)
- Non-exempt employees
- Non-competes are void for FLSA non-exempt (overtime-eligible) employees.
- Independent contractors
- Covered by the statute.
- Notice and timing
- Employers must post a copy or approved summary of the law with other required notices (warning, then up to $250 and up to $1,000 for repeat failures). Any severance that conditions enforcement must be disclosed at signing.
- Layoffs / firing without cause
- For covenants entered into, amended or renewed on or after July 1, 2026: unenforceable if the employer discharges the employee other than for cause without severance or another monetary payment disclosed when the covenant was signed.
- Non-solicitation
- A non-compete may not bar a low-wage employee from serving a customer the employee did not contact or solicit. Health care professionals may be bound by narrow patient/customer non-solicits but must be free to tell patients where they now practice.
- Overbroad covenants
- No settled rule we could confirm
- Penalties
- $10,000 civil penalty per violation; employees may sue within 2 years to void the covenant and recover lost compensation, damages, liquidated damages and attorney's fees.
Profession-specific rules
- VoidNo non-compete with a 'health care professional' licensed, registered or certified by the Boards of Medicine, Nursing, Counseling, Optometry, Psychology or Social Work (covenants entered into or renewed on or after July 1, 2026). Exceptions include reasonable sale-of-business covenants, repayment of certain recruitment, relocation, bonus and training costs, and narrow patient non-solicits. (effective July 1, 2026) Va. Code 40.1-28.7:8 (SB 128 / HB 627, 2026)
- VoidPhysicians and other Board of Medicine licensees are within the 2026 health care professional ban. (effective July 1, 2026) Va. Code 40.1-28.7:8
Recent and pending changes
- July 1, 2026: SB 128 (2026 ch. 1114) and HB 627 (ch. 1113) ban health care professional non-competes; SB 170 (ch. 883) requires disclosed severance to enforce against employees fired without cause; Commonwealth average weekly wage rises to $1,507 (VWC: $1,507.01). 2026 Acts ch. 883 (SB 170)
- July 1, 2025: SB 1218 (2025 ch. 585): every employee entitled to FLSA overtime counts as 'low-wage' regardless of earnings. LIS: SB 1218 (2025)
Federal law
There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.
Frequently asked questions
Are non-competes enforceable in Virginia?
Void for low-wage, non-exempt and health care workers. Virginia employers may not enter into, enforce or threaten to enforce a non-compete with a 'low-wage employee' - anyone whose average weekly earnings are below the Commonwealth's average weekly wage (about $78,364 a year from July 1, 2026) or who is entitled to overtime under the FLSA - or, since July 1, 2026, with a licensed health care professional. For covenants entered into, amended or renewed on or after July 1, 2026, a non-compete is also unenforceable against an employee fired without cause unless the employer pays severance or another monetary payment disclosed when the covenant was signed. Violations carry a $10,000 civil penalty and a private right of action.
Is there a salary threshold for non-competes in Virginia?
Yes — $78,364. Average weekly earnings (last 52 weeks) below the Commonwealth average weekly wage: $1,507 per week from July 1, 2026 (VWC publishes $1,507.01; Va. Code 65.2-500(B) rounds to the nearest dollar), about $78,364 a year; $1,463.10 per week before July 1, 2026. Workers paid mainly by commission or incentives are excluded.
Did the FTC ban non-competes in Virginia?
No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.
Official Sources
Figures checked against these sources on 2026-10-07Other states
Same category (Pay threshold / worker limits): Colorado, District of Columbia, Illinois, Maine, Maryland, Massachusetts, Nevada, New Hampshire
Protect information instead with a confidentiality agreement (NDA generator), or hiring in Virginia? Use the offer letter generator.
Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in Virginia.