The Clause About Working Elsewhere
Va. Code 40.1-28.7:8 — no noncompete for low-wage employees or health care professionals
In Virginia, no employer may enter into, enforce or threaten to enforce a covenant not to compete with any low-wage employee or health care professional. Low-wage employees include those earning less than the average weekly wage of the Commonwealth and those entitled to overtime pay, along with interns, students, apprentices and trainees.
Fired without severance. No covenant not to compete is enforceable if the employer discharges the employee without providing severance benefits or other monetary payment, unless the discharge is for cause. The severance is disclosed when the covenant is signed.
The employee can sue. An employee or health care professional may sue a former employer that tries to enforce a covenant in violation of the section, within two years of the latest of the dates the section lists, and recover damages and reasonable attorney fees. An employer that violates the ban faces a civil penalty of $10,000 for each violation.
| The assumption | What the law actually does |
|---|---|
| The assumptionA noncompete binds an hourly worker | What the law actually doesNot a low-wage employee, including anyone entitled to overtime |
| The assumptionBeing fired does not change the clause | What the law actually doesNot enforceable after a discharge without cause and without severance |
Non-solicitation and confidentiality agreements, trade secret law and the sale of a business follow rules of their own and are not all on this page. Whether a particular clause is enforceable is a question for a licensed Virginia attorney.
Sources for this section (1)
- Va. Code 40.1-28.7:8 — Covenants not to compete prohibited; exceptions; civil penalty
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed Virginia attorney.