In a significant move to protect employee rights, the Virginia General Assembly passed Senate Bill 170 on March 4th, further restricting the use of non-compete agreements by employers. This amendment to Virginia’s existing non-compete statute aims to invalidate non-competes for employees who are terminated without cause and do not receive severance benefits or any monetary compensation linked to their termination.
A key feature of SB 170 is the requirement for employers to disclose any severance or monetary benefits when a restrictive covenant is signed. This transparency ensures that employees are fully informed about their rights and benefits at the time of agreement.
SB 170 expands the law by allowing all employees, not just low-wage earners, to take legal action against employers enforcing non-competes in violation of the new regulations. This broadens the scope of protection, empowering more workers to challenge unfair contractual practices.
The bill is now awaiting Governor Spanberger’s signature. If enacted, the new law will take effect on July 1, 2026, impacting any contracts, covenants, or agreements entered into, amended, or renewed from that date forward.
Follow Vasseghi Law Group for insights and guidance whether you’re an employer or a departing employee. We’re here to help you navigate these changes and protect your interests.