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Non-Compete Laws in Virginia2026 Guide

Virginia bans non-competes for workers earning under $78,365/year. A 2026 court ruling clarified that even non-solicitation provisions can't be enforced against low-wage workers (Sentry Force Security v. Barrera, 2026).

Virginia Non-Compete Law: Statutory Framework & Judicial Standards

Last updated March 2026. For informational purposes only — does not constitute legal advice. Consult a licensed attorney in Virginia for guidance on your specific situation.

§ 1. Governing Statutory & Common Law Authority

The enforceability of non-competition agreements in Virginia is governed by Va. Code § 40.1-28.7:8 (effective 2020); common law. Non-competes banned for 'low-wage employees' earning below $78,365/year (2026). Must be supported by adequate consideration. Virginia uses a red-pencil approach.

Recent legislative developments: 2020 statute banned non-competes for low-wage workers. Threshold adjusted annually.

§ 2. Compensation Threshold Requirements

Virginia imposes a statutory compensation threshold for non-compete enforcement. Under current law, non-compete covenants are presumptively void for employees earning below the statutory minimum. 2026 threshold (based on average weekly wage). Adjusted annually. The threshold is $78,365/year — but whether your total compensation qualifies depends on how your state counts bonuses, commissions, and equity.

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§ 3. Temporal Limitations on Post-Employment Restrictions

Virginia does not codify a maximum duration. Must be reasonable; courts scrutinize carefully. In practice, 1-2 years is generally considered the outer limit of reasonableness, though outcomes vary significantly based on the employee's role and access to trade secrets.

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§ 4. Judicial Modification (Red Pencil Doctrine)

Virginia applies the red pencil doctrine: if any provision is unreasonable, the entire non-compete is void. Courts will not rewrite the agreement. This places the drafting burden on employers and can benefit employees challenging overbroad restrictions.

§ 5. Statutory Exemptions & Carve-Outs

Virginia law exempts certain workers from non-compete enforcement:

  • Low-wage employees (below threshold)

§ 6. Consideration & Contract Formation

Adequate consideration required; continued employment alone may not be sufficient. Whether this is legally sufficient — especially for agreements presented mid-employment rather than at hiring — is frequently contested.

§ 7. Effect of Involuntary Termination

Courts consider circumstances; a strong factor against enforcement. Courts may apply heightened scrutiny when the employer initiated the termination, particularly for termination without cause or mass layoffs.

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Practitioner Notes

Red-pencil doctrine combined with low-wage ban makes Virginia increasingly employee-friendly on non-competes.

For informational purposes only. Consult a licensed employment attorney in Virginia for advice specific to your circumstances.

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Based on your salary of $XX,XXX and your state's threshold of $XX,XXX, your non-compete is...

This determination is based on a cross-reference of your specific compensation against the statutory threshold, the duration of your restriction, your industry classification, and the circumstances of your departure. The following sections detail each factor.
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National Precedent

Notable non-compete cases

These nationally significant cases illustrate common non-compete disputes.

Employee won2016 · IL · Food Service

Jimmy John's Forced Sandwich Makers to Sign Non-Competes Barring Work at Any Deli

Jimmy John's required its sandwich makers and delivery drivers -- workers earning near minimum wage -- to sign non-compete agreements prohibiting them from working at any business that sold 'submarine, hero-type, deli-style, pita, and/or wrapped or rolled sandwiches' within two miles of any Jimmy John's location in the United States for two years after leaving. The Illinois Attorney General filed a lawsuit in June 2016, and the New York Attorney General launched a separate investigation. Workers who wanted to leave for a better-paying food service job were effectively locked out of the entire sandwich industry.

Outcome

Jimmy John's agreed to stop using non-compete clauses in hiring packets nationwide, paid $100,000 to fund education and outreach programs, and was required to notify current and former employees that their non-competes would not be enforced.

Source: CNBC→
Employee won2025 · National · Pet Services

Pet Cremation Company Locked 1,800 Workers -- Including Hourly Laborers and Drivers -- Into Nationwide Non-Competes

Gateway Services, the largest pet cremation business in the U.S. with over 100 locations serving 17,000 veterinary clinics, imposed non-compete agreements on nearly 1,800 employees prohibiting them from working anywhere in the pet cremation industry in the entire United States for one year after leaving. The agreements were applied without any individualized consideration of an employee's role -- hourly cremation facility laborers, drivers, and customer service staff were subject to the same nationwide restrictions as executives. The FTC filed an enforcement action in September 2025, marking a shift to case-by-case non-compete enforcement after its blanket ban was struck down.

Outcome

In November 2025, the FTC finalized a consent order requiring Gateway to stop enforcing all existing non-competes and banning it from entering into similar agreements in the future, freeing nearly 1,800 workers.

Source: Federal Trade Commission→

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