Virginia Gov. Abigail Spanberger signed Senate Bill (SB) 170 into law on April 13, 2026, after Virginia’s General Assembly passed the bill on March 4, 2026. SB 170 amends § 40.1-28.7:8 of the Code of Virginia by introducing new restrictions and requirements regarding covenants not to compete between employers and employees, with a particular focus on low-wage employees and employees who are discharged. Under the bill, a noncompete agreement will be unenforceable if an employer terminates an employee without cause and the employee does not receive severance pay or other prior disclosed monetary compensation. The bill does not define what constitutes “cause.”
Virginia Governor Signs Senate Bill 170, Targeting Noncompete Agreements
