Non-Compete Agreements in Virginia: Low-Wage Worker Protections
Virginia added significant non-compete restrictions in 2020, focusing on protecting low-wage workers while maintaining traditional reasonableness analysis for higher earners.
Low-Wage Worker Protection
Virginia law prohibits non-competes for "low-wage employees," defined as workers who earn:
- Less than Virginia's average weekly wage (approximately $1,343/week in 2024), OR
- Less than the federal minimum wage
For these workers, non-competes are void and unenforceable regardless of other factors.
Additional Protected Categories
Non-competes are also prohibited for:
- Interns (paid or unpaid)
- Student employees
- Employees who work primarily with their hands
- Independent contractors earning below the threshold
Traditional Standards for Other Workers
For workers above the wage threshold, Virginia applies traditional reasonableness analysis:
Function Rule
Non-competes must be no broader than necessary to protect legitimate business interests.
Employer Must Show:
- A protectable interest (trade secrets, customer relationships, etc.)
- The restriction is reasonably necessary
- The restriction doesn't harm the public interest
Reasonableness Factors:
- Time period
- Geographic scope
- Type of restricted activity
- Hardship to the employee
Notice and Timing Requirements
Employers must provide a copy of the non-compete to the employee before the employee accepts employment. This gives workers the opportunity to:
- Review terms before committing
- Negotiate changes
- Seek legal advice
- Decline the position if terms are unacceptable
Practical Advice
- Calculate your weekly wage to determine if you're protected
- Document when you received the non-compete—was it before you accepted?
- For higher earners, focus on traditional reasonableness arguments
Frequently Asked Questions
Who is protected from non-competes in Virginia?
Virginia prohibits non-competes for 'low-wage employees' earning less than the state's average weekly wage (about $1,343/week in 2024), as well as interns, student employees, and workers who primarily work with their hands.
What standard applies to Virginia non-competes for higher earners?
For workers above the wage threshold, Virginia uses traditional reasonableness analysis. Courts examine whether the employer has a legitimate protectable interest and whether the restriction in time, geography, and scope is reasonable and necessary.
Must Virginia employers provide non-competes before hiring?
Yes, employers must provide a copy of the non-compete to the employee before the employee accepts employment, giving workers the chance to review, negotiate, or decline.
Analyze Your Contract Clause
Paste your contract clause below for instant AI analysis. Get risk assessment, plain English explanation, and suggested improvements.