Non-Compete Laws in Virginia
Restricted by income threshold
Virginia restricts non-competes for employees entitled to overtime under the FLSA (regardless of weekly income) and employees whose average weekly earnings are less than the average weekly wage of the Commonwealth. The law was amended effective July 1, 2025.
Key details
| Enforceability | Restricted by income threshold |
|---|---|
| Blue pencil doctrine | Varies |
| Key statute | Va. Code §40.1-28.7:8 |
Recent changes
Amendment effective July 1, 2025 expanded protections.
What this means for you
If you are entitled to overtime under federal law or earn below the average weekly wage, your non-compete is likely void.
Non-compete laws in Virginia: what you need to know
Virginia restricts non-competes based on both income and exempt status under the FLSA. As of July 1, 2025, employers are prohibited from entering into non-compete agreements with employees who are non-exempt under the Fair Labor Standards Act, regardless of their income. Previously, the restriction applied only to low-wage employees earning less than the average weekly wage in Virginia. This expansion significantly broadened the pool of protected workers.
For workers who are exempt under the FLSA but earn less than the average weekly wage of the Commonwealth ($1,507.01 per week in 2026, approximately $78,364 annually), non-competes are also unenforceable. The average weekly wage is updated annually, which means the threshold adjusts over time.
Virginia also requires employers to post a copy of the state's non-compete law in the workplace, ensuring that employees are aware of their rights. Violations of the non-compete restrictions can result in attorney fees, expert witness fees, and costs, as well as civil penalties of $250 for a second violation and $1,000 for each subsequent violation.
For Virginia workers above the threshold who are FLSA-exempt, non-competes must still be reasonable in duration, geographic scope, and activities prohibited. Virginia courts evaluate these agreements using a traditional reasonableness standard. The state also has specific restrictions on non-competes for attorneys and physicians.
Virginia's approach is notable for tying non-compete restrictions to FLSA exempt status. This creates a clear, bright-line test for many workers: if your employer must pay you overtime, they cannot require you to sign a non-compete. This covers a broad range of workers across many industries, including administrative, clerical, and service workers who may earn above the general wage threshold but are still entitled to overtime.
Virginia's 2025 expansion to protect all FLSA non-exempt workers was a significant broadening of the state's non-compete restrictions. Previously, the protection was limited to low-wage workers defined by the average weekly wage. By extending protection to all non-exempt workers, the state significantly increased the number of workers who cannot be bound by non-competes.
More Virginia workplace laws
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Frequently asked questions about non-compete laws in Virginia
No. As of July 1, 2025, Virginia law prohibits non-competes for all employees who are non-exempt under the FLSA, regardless of their income. If you are entitled to overtime pay, your non-compete is unenforceable.
Even for FLSA-exempt workers, non-competes are unenforceable if you earn less than the average weekly wage of the Commonwealth ($1,507.01 per week in 2026, or about $78,364 per year). The threshold is updated annually.
Yes. Virginia law requires employers to post a copy of the state's non-compete law in the workplace.
Yes. Virginia has specific exceptions and restrictions for physicians. Non-competes for physicians are generally banned, with limited exceptions. Consult an employment attorney for guidance on your specific situation.
Violations can result in attorney fees, expert witness fees, and costs. Civil penalties of $250 apply for a second violation and $1,000 for each subsequent violation.