Virginia non-compete law

Pay figure in the law

$1,507.01 a week (average)

Separate rules for professions

health care workers

Statutes and official texts quoted

Va. Code § 40.1-28.7:8(B); Va. Code § 40.1-28.7:8(A); Va. Dep't of Labor & Industry, Notice of the Average Weekly Wage for 2026; Va. Code § 40.1-28.7:8(C); Va. Code § 40.1-28.7:8(D); Va. Code § 40.1-28.7:8(E); Va. Code § 40.1-28.7:8(G); Va. Code § 40.1-28.7:8(H)(1); Va. Code § 40.1-28.7:8(H)(2); Va. Dep't of Labor & Industry, Legislative Changes page (SB 1218, 2025); Va. Code § 40.1-28.7:8 (history note)

Is a non-compete allowed?

Virginia bars employers from entering into, enforcing, or threatening to enforce a covenant not to compete with any low-wage employee or health care professional.

“No employer shall enter into, enforce, or threaten to enforce a covenant not to compete with any low-wage employee or health care professional.”
Va. Code § 40.1-28.7:8(B)

Pay thresholds

A low-wage employee includes one whose average weekly earnings over the 52 weeks before termination are less than the Commonwealth's average weekly wage, or who is entitled to overtime under the federal Fair Labor Standards Act regardless of earnings.

“are less than the average weekly wage of the Commonwealth as determined pursuant to subsection B of § 65.2-500 or (ii) who, regardless of his average weekly earnings, is entitled to overtime compensation under the provisions of 29 U.S.C. § 207 for any hours worked in excess of 40 hours in any one workweek.”
Va. Code § 40.1-28.7:8(A)

For 2026, Virginia's labor department states that low-wage employees for non-compete purposes include all employees earning an average of less than $1,507.01 per week.

“the term “low-wage employee” as applied to covenants not to compete has been calculated by the Virginia Department of Workforce Development and Advancement to include all employees who earn an average of less than $1,507.01 per week.”
Va. Dep't of Labor & Industry, Notice of the Average Weekly Wage for 2026

Notice and signing

Every employer must post a copy of this section or a Department-approved summary where other required employee notices are posted.

“Every employer shall post a copy of this section or a summary approved by the Department in the same location where other employee notices required by state or federal law are posted.”
Va. Code § 40.1-28.7:8(G)

Health care and other professions

Health care professional means anyone licensed, registered, or certified by Virginia's Boards of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work.

“"Health care professional" means any person licensed, registered, or certified by the Board of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work.”
Va. Code § 40.1-28.7:8(A)

In a sale of all or substantially all of a health care professional's business, the buyer and seller may agree to a covenant not to compete that is reasonable in scope, duration and geographic area.

“In such transactions, the seller and buyer may enter a covenant not to compete or similarly restrictive covenant for the health care professional or such person's business entity, provided that such covenant not to compete or similarly restrictive covenant is reasonable in scope, duration, and geographic area.”
Va. Code § 40.1-28.7:8(H)(2)

Who is covered

Low-wage employees include interns, students, apprentices and trainees, and certain independent contractors paid below the state median hourly wage; employees paid mainly through commissions, incentives or bonuses are excluded.

“For the purposes of this section, "low-wage employee" does not include any employee whose earnings are derived, in whole or in predominant part, from sales commissions, incentives, or bonuses paid to the employee by the employer.”
Va. Code § 40.1-28.7:8(A)

Exceptions

A covenant not to compete is not enforceable if the employer discharges the employee without severance or other monetary payment, unless the discharge is for cause; the payment must be disclosed when the covenant is signed.

“No covenant not to compete between an employer and an employee is enforceable if such employer discharges such employee from employment without providing severance benefits or other monetary payment to such employee, unless such employer discharges such employee for cause. Such severance benefits or other monetary payment shall be disclosed upon execution of the covenant not to compete.”
Va. Code § 40.1-28.7:8(C)

A covenant not to compete may not restrict an employee from serving an employer's customer or client if the employee does not initiate contact or solicit them.

“A "covenant not to compete" shall not restrict an employee from providing a service to a customer or client of the employer if the employee does not initiate contact with or solicit the customer or client.”
Va. Code § 40.1-28.7:8(A)

The section does not limit nondisclosure agreements protecting trade secrets and proprietary or confidential information.

“Nondisclosure agreements intended to prohibit the taking, misappropriating, threatening to misappropriate, or sharing of certain information to which an employee has access, including trade secrets, as defined in § 59.1-336, and proprietary or confidential information; or”
Va. Code § 40.1-28.7:8(H)(1)

If it is challenged

An employee or health care professional may sue within two years of the latest listed event; the court may void the covenant and award relief including an injunction, liquidated damages, lost compensation, damages, and reasonable attorney fees and costs.

“The court shall have jurisdiction to void any covenant not to compete with an employee or health care professional and to order all appropriate relief, including enjoining the conduct of any person or employer, ordering payment of liquidated damages, and awarding lost compensation, damages, and reasonable attorney fees and costs.”
Va. Code § 40.1-28.7:8(D)

An employer found by the Commissioner to violate subsection B or C is subject to a $10,000 civil penalty per violation.

“Any employer that violates the provisions of subsection B or C as determined by the Commissioner shall be subject to a civil penalty of $10,000 for each violation.”
Va. Code § 40.1-28.7:8(E)

Employers may not retaliate against a low-wage employee or health care professional for bringing a civil action under this section.

“No employer may discharge, threaten, or otherwise discriminate or retaliate against a low-wage employee or health care professional for bringing a civil action pursuant to this section.”
Va. Code § 40.1-28.7:8(D)

When the rules took effect

Virginia's labor department states that the 2025 expansion covering FLSA overtime-eligible employees does not apply to agreements entered into before July 1, 2025.

“This expanded coverage does not apply to contracts, covenants, or agreements entered into prior to July 1, 2025.”
Va. Dep't of Labor & Industry, Legislative Changes page (SB 1218, 2025)

The Code's history note lists the section's enactment in 2020 and amendments in 2025 and 2026 (2026 chapters 883, 1113 and 1114); the fetched page does not state the 2026 amendments' effective date.

“2020, cc. 948, 949, § 40.1-28.7:7; 2025, c. 585; 2026, cc. 883, 1113, 1114.”
Va. Code § 40.1-28.7:8 (history note)

Federal rules

On September 5, 2025, the FTC moved to dismiss its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC and to accede to vacatur of the Non-Compete Clause Rule. FTC press release, Sept. 5, 2025

The FTC's final rule removes the Non-Compete Rule (16 CFR part 910) from the Code of Federal Regulations. 91 Fed. Reg. (Feb. 12, 2026), FR Doc. 2026-02866

Before you sign, or before you assume you are bound

1. Find every restrictive clause: non-compete, non-solicitation, no-hire and confidentiality are separate promises with separate rules.
2. Note how long each lasts and what area or customers it covers.
3. Check which state’s law the agreement picks and where disputes must be heard.
4. Compare your pay and your job with the Virginia rules above.

Check your state with the non-compete checker.

Common questions

Are non-competes enforceable in Virginia?

Virginia bars employers from entering into, enforcing, or threatening to enforce a covenant not to compete with any low-wage employee or health care professional. (Va. Code § 40.1-28.7:8(B)).

Is there a salary threshold for non-competes in Virginia?

For 2026, Virginia's labor department states that low-wage employees for non-compete purposes include all employees earning an average of less than $1,507.01 per week. (Va. Dep't of Labor & Industry, Notice of the Average Weekly Wage for 2026).

Does Virginia have special non-compete rules for health care workers or other professions?

Health care professional means anyone licensed, registered, or certified by Virginia's Boards of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work. (Va. Code § 40.1-28.7:8(A)).