Being asked to sign a noncompete agreement—or being reminded of one as a job ends—can make a career change feel uncertain. This guide provides general information about Virginia noncompete agreements. It does not determine whether a particular agreement applies or is enforceable. The complete agreement, the facts, and the law that governs a situation can matter.
What is a noncompete agreement?
A noncompete provision generally seeks to restrict certain competitive work or a competing business after employment ends. Virginia law defines a “covenant not to compete” as an employer–employee covenant or agreement that restricts an individual’s ability, after employment ends, to compete with the former employer. The statute also states that the definition does not include a restriction on serving an employer customer or client when the employee did not initiate contact with or solicit that customer or client.
A heading is not the whole answer. The full language, any amendments, the role involved, and the applicable law may all matter. Read the current text of Code of Virginia § 40.1-28.7:8 alongside the document itself.
Not every restrictive term is a noncompete
| Term a reader may see | Plain-language question | Important limitation |
|---|---|---|
| Noncompete | Does this limit certain work or a business after employment ends? | The statutory definition and the complete wording matter. |
| Nondisclosure or confidentiality term | Does this address information learned through work? | Virginia’s statute expressly preserves specified nondisclosure agreements; do not assume every information-related clause is a noncompete. |
| Non-solicitation term | Does this address contact with customers, clients, workers, or prospective customers? | It may have different statutory treatment and should not be treated as identical to a noncompete. |
| Repayment or training-cost term | Does this require payment after a stated event? | It is not automatically a noncompete. Some health-care-related provisions have specific statutory language. |
Current Virginia protections to know about
Virginia’s statute includes defined protections for certain workers. It prohibits an employer from entering into, enforcing, or threatening to enforce a covenant not to compete with a low-wage employee. The definition includes detailed wage, overtime, sales-commission, and other criteria. Rather than rely on a fixed dollar figure that may become outdated, read the current statutory definition and applicable wage information.
The statute also addresses covered health care professionals, using a specific licensure, registration, or certification definition tied to listed Virginia boards. It contains separate provisions concerning patient information, certain business sales, customer non-solicitation, and recruitment-related repayment terms for health care professionals.
For covenants between an employer and employee, the statute states that a covenant is not enforceable if the employer discharges the employee without providing severance benefits or other monetary payment, unless the employer discharges the employee for cause. It also addresses disclosure of the severance benefit or payment when the covenant is executed. These statutory conditions should not be read as a rule for every resignation, layoff, severance document, or agreement.
Federal update: the FTC rule is not in effect
Checked September 8, 2026: The Federal Trade Commission states that its 2024 Noncompete Rule is not in effect and is not enforceable. That does not create a current nationwide ban, and Virginia law and the wording of an individual agreement can still matter. See the FTC’s current rule-status page for the agency’s update.
What to locate and read before making a decision
Gather the documents that explain the issue: the signed agreement and attachments, later amendments, offer materials, a job description, any separation or severance document, and communications that identify the proposed restriction. Handle employer information and records lawfully and consistently with any applicable obligations. This guide does not recommend signing, refusing, breaching, or ignoring a particular term.
Questions that can help you understand the document
- What post-employment activity does the clause describe?
- When was it signed or changed, and what job and work location does it identify?
- Does it name a time period, territory, customers, or type of work?
- Does it refer to severance or another monetary payment?
- Does it select a governing law or forum?
These are reading questions, not an enforceability test. A demand letter, court filing, job offer, separation notice, or planned start date can make the issue time-sensitive. Timing rules may depend on the facts and the claim; this article does not provide one deadline for everyone.
Official Virginia and federal resources
- Code of Virginia § 40.1-28.7:8
- Virginia Department of Labor and Industry: 2026 employment-law update
- Virginia Department of Labor and Industry: Virginia labor laws
- Federal Trade Commission: Noncompete Rule status
A final reminder
This page provides general information about Virginia noncompete agreements. It is not legal advice and does not determine whether a particular agreement applies or is enforceable. Laws and facts can change. Consider obtaining individualized information from a lawyer licensed for the relevant matter when the documents or circumstances require it. Avoid sending confidential or highly sensitive information through a public website form until you are instructed to do so.