Virginia's SB170, effective July 1, 2026, bars enforcing a noncompete against an employee fired without cause unless the employer pays severance or other monetary consideration that was disclosed when the noncompete was signed. The restrictions apply to agreements entered into on or after July 1, 2026.
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Virginia SB170 restricts noncompetes for terminated staff from July 1, 2026
Why this matters for founders
Update Virginia noncompete templates to spell out any severance that will support enforceability, and don't count on enforcing a noncompete after a no-cause termination unless you actually pay the disclosed amount.
Source: Epstein Becker Green
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