Threshold regime

Non-compete enforceability in Virginia

Banned for 'low-wage employees' (earnings below VA average weekly wage) and FLSA-overtime-eligible workers.

What this means for you

Virginia is a threshold state: a non-compete is void below a statutory income floor and only potentially enforceable above it — and even above the floor it must still be reasonable in time, geography, and scope.

Primary statute

Va. Code § 40.1-28.7:8

Primary verified

https://law.lis.virginia.gov/vacode/title40.1/chapter3/section40.1-28.7:8/

Effective: 2020-07-01
Last amended: 2025-07-01
Research verified: 2026-05-08

Doctrine

Blue-pencil. Courts strike specific over-broad terms (duration, geography, scope) while preserving the enforceable core.

Salary / wage threshold

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2026 value

'Low-wage' = avg weekly earnings below Virginia's average weekly wage (~$1,410/wk for 2026 — ESTIMATE) OR FLSA-overtime-eligible regardless of earnings (HB 2517, 2025). Excludes employees primarily compensated by sales commission/bonuses.

Gotchas

$10,000 civil penalty per violation; 2-year statute of limitations.
Choice-of-law / forum-selection bar protects VA-resident workers.

Recent amendments

2025 — HB 2517 (2025)
Extended ban to FLSA-overtime-eligible employees regardless of earnings level. Verify current-year language.

Federal context

The FTC's 2024 federal non-compete ban was vacated nationwide in Ryan v. FTC and removed from the Code of Federal Regulations in February 2026. There is no federal ban in force — so Virginia's state law controls. Read the federal status.

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