Covenants not to compete; exceptions, civil penalty.
About This Bill
Latest Action · Jul 21, 2026
Continued from last session
Session
2027
Introduced
Jan 13, 2026
Primary Sponsor
Alfonso H. Lopez· primary
Summary
Highlight any text to annotate
A BILL to amend and reenact § 40.1-28.7:8 of the Code of Virginia, relating to covenants not to compete prohibited; exceptions; civil penalty.
Covenants not to compete; exceptions; civil penalty. Prohibits an employer from entering into, enforcing, or threatening to enforce a covenant not to compete with employees who perform key duties of the employer's enterprise or customarily and regularly solicit customers or make sales or contracts for the employer. Under the bill, certain employees are permitted to enter agreements to refrain from soliciting business from the employer for a stated period of time following termination. The penalty provisions in current law for covenants not to compete for low-wage employees shall apply to a violation of the provisions of the bill. The provisions of the bill apply to contracts entered into, amended, or renewed on or after July 1, 2026.