Virginia and Washington: Additional states expand restrictions on non-compete agreements

At a glance

• Virginia expands restrictions on non-compete agreements.
• Washington state enacts reforms to its non-compete framework.

Virginia enacted an amendment restricting the enforceability of non‑compete agreements, effective July 1, 2026. The amendment builds on Virginia’s existing restrictions, including the prior ban applicable to low-wage employees, and is not retroactive. Post‑termination non‑competes are generally only enforceable if the employer provides severance, unless the employee is terminated for cause. In addition, non-competes are largely prohibited for healthcare professionals, except in a sale‑of‑business context. Recent Virginia appellate case law may affect non‑solicitation provisions.

Washington’s HB 1155 prohibits most non‑compete agreements for Washington‑based employees, regardless of compensation level, with limited exceptions. The law expands enforcement exposure, including statutory damages, attorneys’ fees, and Attorney General enforcement. Employers will face new affirmative notice obligations to inform current and former workers that existing non‑competes are void. The new framework takes effect June 30, 2027.