No Severance, No Noncompete: Virginia Mandates Employers Pay for Enforceable Noncompete Agreements Against Laid-Off Employees
PilieroMazza – Virginia has become increasingly hostile to noncompetition agreements of late. Starting July 1, 2026, Virginia employers will be prohibited from enforcing new noncompete agreements against employees who are laid off or fired without cause—unless the employer pays them severance or another amount that it specifies upfront in the noncompete agreement. Before the law takes effect, Virginia employers should review their noncompete agreements and employee separation practices to ensure compliance and minimize legal and financial penalties.
