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HB 949

Covenants not to compete; exceptions, civil penalty.

2026 Regular Session Introduced by Alfonso Lopez

HB 949 restricts Virginia employers' ability to enforce non-compete agreements against workers and establishes civil penalties for unlawful covenant violations.

Continued to next session in Labor and Commerce (Voice Vote)
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WeVote Research Nonpartisan
Bill Summary · HB 949

Legislative bill overview

HB 949 restricts the enforceability of non-compete agreements in Virginia by establishing exceptions and creating civil penalties for violations. The bill limits when employers can require employees to sign covenants not to compete, likely imposing conditions such as legitimate business interests, reasonable time/geographic scope, or excluding certain worker categories from enforcement.

Why is this important

Non-compete agreements significantly impact worker mobility and job market competition. Restrictions affect millions of employees' ability to change jobs, start competing businesses, or relocate within their industry. This influences wage growth, entrepreneurship rates, and economic dynamism in Virginia's labor market while reshaping employer-employee relationship leverage.

Potential points of contention

  • Business vs. worker balance: Employers argue non-competes protect trade secrets and client relationships; workers and economists argue they suppress wages and limit opportunity
  • Scope and enforceability standards: Disagreement over what constitutes "reasonable" geographic area and duration, and which industries/positions warrant protection
  • Civil penalty structure: Uncertainty about penalty amounts and whether they adequately deter violations while remaining proportionate to business harm

Compiled from official sources — confirm details with the bill’s official record.

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