Virginia Takes Another Step to Restrict Non-Competes: A 5-Step Action Plan for Employers
Employers in Virginia should be aware of legislation that would make it even harder to enforce non-competes. This is the latest in a series of moves curbing such agreements in the state. Specifically, the Virginia House of Representatives passed a bill on March 4 that would limit an employer’s ability to enforce a non-compete agreement against laid off or fired employees, unless the termination is “for-cause.” The bill, which also passed the state Senate in early February, is now headed to Governor Abigail Spanberger – and we expect her to sign it into law. Here’s what employers in Virginia need to know and a five-step action plan for compliance. New Limit on Enforceability If signed into law, SB 170 will void employee non-competes for workers who are laid off without severance or other compensation. According to the bill, this will apply to all involuntary terminations, except in “for-cause” terminations. These restrictions would apply to all non-compete agreements signed on or afte...