Trade Secrets & Employee Mobility

As we reported last month, Virginia lawmakers passed Senate Bill 170 imposing additional restrictions on employee noncompetes in the Commonwealth. On April 13, 2026, Governor Abigail D. Spanberger signed Senate Bill 170 (“the Act”) into law. The Act will take effect July 1, 2026 and will prohibit enforcement of a noncompete if the employer discharges the employee without cause and does not provide the employee with severance benefits or other monetary payment. The Act applies to agreements entered into, amended, or renewed on or after July 1, 2026.

Virginia is poised to impose new limitations on the circumstances in which employers may restrict employees from working for a competitor or engaging in other competing business activities. As we reported in 2020, the Commonwealth first prohibited noncompete agreements for “low-wage” workers. Then as we reported in 2025, Virginia expanded those restrictions to prohibit noncompetes with employees who are entitled to overtime pay under the FLSA for any hours worked in excess of 40 hours in any one workweek (“non-exempt employees”).