Virginia Noncompete Agreements: FAQs for Employers and Employees

Restrictive covenants, more commonly known in the employment law context as “noncompete agreements,” have become increasingly common in Virginia and throughout the country in recent decades. The backlash against them has also grown in recent years, with many states, including Virginia, increasingly clamping down on their use. While noncompete agreements may not be as widespread as they once were, they are still very much alive at the executive level and among salaried employees. A Richmond non-compete lawyer can advise both employers and employees on the legal landscape surrounding non-compete agreements so as to avoid inadvertently running afoul of the law or needlessly complying with the terms of void agreements.

Are Noncompete Agreements Enforceable in Virginia?

As with most legal questions, it depends. Traditionally, Virginia courts enforced noncompete agreements only to the extent that they were reasonable, which generally requires them to be :

Narrowly drawn to protect a legitimate business interest
Not unduly burdensome on the employee’s ability to earn a living
Not contrary to public policy

While that legal test is still in effect, the landscape has changed. In 2020, Virginia banned noncompete agreements for low-wage employees, defined as those whose average weekly earnings are less than the commonwealth’s average weekly wage. (As of the date of publication, the average weekly wage in Virginia is $1,507.01.) That ban was expanded in 2025 to include all nonexempt employees under the Fair Labor Standards Act, which generally covers workers paid an hourly wage rather than a salary.

To summarize, noncompete agreements in Virginia are enforceable (so long as they comply with the legal standard above) for the following employees:

Employees who earn more than the Virginia average weekly wage
Employees who are exempt under the Fair Labor Standards Act
Employees whose earnings are derived in whole or in part from sales commissions, incentives, or bonuses (an exception to the noncompete ban)

If you’re unsure whether you fall into one or more of the above categories, speak to a Richmond non-compete lawyer.

What Counts as “Reasonable” Noncompete Agreement?

Virginia courts typically examine three factors when determining the reasonableness of a noncompete agreement.

First, they evaluate the function or scope of the activity to be prohibited. A reasonable noncompete agreement generally restricts only the type of work that genuinely would threaten the employer’s business interests. For example, a noncompete agreement that prohibits a salesperson from working in sales for a direct competitor may be more reasonable in scope than one that prohibits them from working in any capacity for a competitor.
Second, they evaluate the geographic scope of the prohibition. Such scope generally must align with the employer’s market or with the markets where it conducts business. For a national company, a nationwide restriction may be reasonable, but for a purely local business, it may not be.
Third, they evaluate the duration of the prohibition. Most noncompete agreements fall in the 6-24 month range, depending on the industry and the former employee’s role. While not per se unlawful, noncompete agreements lasting more than two years may invite additional judicial scrutiny.

Whether a particular noncompete agreement is “reasonable” depends a great deal on the facts of the specific case. To discuss whether your noncompete agreement is likely to be found reasonable, speak to a Richmond noncompete lawyer.

What Is a “Legitimate Business Interest?”

Mere suppression of ordinary competition is not a legitimate business interest. Rather, a legitimate business interest is a specific, valuable asset. Examples of business interests commonly considered “legitimate” include trade secrets, confidential business information, customer lists, specialized employee training, and the goodwill of the business. Consequently, courts are more likely to enforce noncompete agreements against employees with access to sensitive information than lower-level workers.

Can Virginia Courts Modify Overbroad Noncompetes?

No. While many states allow courts to modify legally non-compliant restrictive covenants to bring them into compliance (a practice known as “blue penciling”), Virginia does not. In Virginia, noncompete agreements stand or fall as drafted. While this may be good news for employees, it creates significant risks for employers, who have but one chance to get their noncompete agreements correct. The best way to ensure that your noncompete agreement will be found to be reasonable and enforceable is to draft it with the assistance of a Richmond non-compete lawyer.

What Remedies Do Employers Have for Breached Noncompete Agreements?

Employers have several options for enforcing noncompete agreements. Most enforcement efforts begin with a cease-and-desist letter to the former employee and/or their new employer, alleging a breach of the agreement and requesting compliance. If that fails, employers may seek injunctive relief, either through a temporary restraining order or a preliminary/permanent injunction, which are designed to legally bar the employee from working in the competitive role. If the employer succeeds and proves actual harm, it may also recover damages.

How Can Employees Get Out of Noncompete Agreements?

Post-2025, the easiest defense available to employees is to argue that their noncompete agreement is void under Virginia’s noncompete ban. If the noncompete ban does not apply to the noncompete agreement in question, the next best defense is for the employee to argue that the agreement is overbroad in either function, geography, or duration — the same arguments they would have made prior to the enactment of the noncompete agreement ban. In some cases, employees may also argue that their new role does not compete in a way that affects their prior employer’s legitimate business interests.

Still Have Questions? Get Real Answers From a Richmond Non-Compete Lawyer.

The law around noncompete agreements is shifting rapidly. But while they are increasingly disfavored as a matter of public policy, they remain valid and enforceable for many employees. For more information about noncompete agreements from both the employer side and employee side, please contact a Richmond noncompete lawyer at Pierce / Jewett by calling 804-502-2320 or using our online contact form.