VirginiaHB9492026 Regular SessionHouse

Covenants not to compete; exceptions, civil penalty.

Sponsored By: Alfonso H. Lopez (Democratic)

In Committee

Summary

Covenants not to compete; exceptions; civil penalty. Prohibits an employer from entering into, enforcing, or threatening to enforce a covenant not to compete with employees who perform key duties of the employer's enterprise or customarily and regularly solicit customers or make sales or contracts for the employer. Under the bill, certain employees are permitted to enter agreements to refrain from soliciting business from the employer for a stated period of time following termination. The penalty provisions in current law for covenants not to compete for low-wage employees shall apply to a violation of the provisions of the bill. The provisions of the bill apply to contracts entered into, amended, or renewed on or after July 1, 2026.

Subcommittee #2

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Bill Overview

No Economic Impacts Identified for this Bill

Sponsors & Cosponsors

Sponsor

  • Alfonso H. Lopez

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 0 • No: 0

House vote 2/3/2026

Continued to 2027 in Labor and Commerce (Voice Vote)

Yes: 0 • No: 0

House vote 1/29/2026

Subcommittee recommends continuing to 2027 (Voice Vote)

Yes: 0 • No: 0

Actions Timeline

  1. Continued to 2027 in Labor and Commerce (Voice Vote)

    2/3/2026House
  2. Subcommittee recommends continuing to 2027 (Voice Vote)

    1/29/2026House
  3. Assigned HCL sub: Subcommittee #2

    1/22/2026House
  4. Referred to Committee on Labor and Commerce

    1/13/2026House
  5. Prefiled and ordered printed; Offered 01-14-2026 26102467D

    1/13/2026House

Bill Text

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