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SB 170 Enacted

Protection of employees; covenants not to compete, discharged employees.

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2026 SESSION

ENROLLED

VIRGINIA ACTS OF ASSEMBLY -- CHAPTER

An Act to amend and reenact § 40.1-28.7:8 of the Code of Virginia, relating to protection of employees; covenants not to compete; discharged employees.

[S 170]

Approved

Be it enacted by the General Assembly of Virginia:

1. That § 40.1-28.7:8 of the Code of Virginia is amended and reenacted as follows:

§ 40.1-28.7:8 . Covenants not to compete prohibited; exceptions; civil penalty.

A. As used in this section:

"Covenant not to compete" means a covenant or agreement, including a provision of a contract of employment, between an employer and employee that restrains, prohibits, or otherwise restricts an individual's ability, following the termination of the individual's employment, to compete with his former employer. A "covenant not to compete" shall not restrict an employee from providing a service to a customer or client of the employer if the employee does not initiate contact with or solicit the customer or client.

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