Virginia Severance Rights: Major Non-Compete Restrictions & Future Protections
Virginia is rapidly shifting toward employee protection: low-wage earners already have non-compete protection (July 2025), and broader non-compete restrictions arrive July 2026 unless paired with severance. Understand your leverage.
Severance Mandated?
No — But Negotiable
Non-Competes
Restricted
State WARN Act
No State WARN
Typical Severance
1-2 weeks per year of service
Virginia Employment Laws That Affect Your Severance
Understanding these VA-specific protections is the first step to negotiating a better package.
SB 170: Low-Wage Non-Compete Ban (Effective July 2025)
Non-competes are unenforceable for employees earning below a threshold tied to federal poverty levels. This protects most frontline and service workers, giving them leverage to eliminate restrictive clauses.
SB 170: Non-Compete Requires Severance or Consideration (Effective July 2026)
Effective July 2026, ALL non-competes in Virginia require the employer to provide severance or other compensation to be enforceable. This is a massive shift: you can demand severance simply to validate any non-compete.
Federal WARN Act (100+ Employees)
Only federal WARN applies in Virginia. Employers with 100+ employees must provide 60 days' notice before mass layoffs. Violations entitle you to back pay and benefits.
OWBPA Protections (40+)
Workers 40 and over get 21 days to review severance agreements (45 days for group layoffs) and 7 days to revoke. This is a federal baseline protecting review timelines.
Public Policy Exceptions
Virginia workers cannot be fired for serving on jury duty, voting, or engaging in other protected civic activities. These exceptions limit at-will authority.
WARN Act: Virginia vs. Federal
| No State WARN | Federal WARN | |
|---|---|---|
| Employer Threshold | N/A — no state WARN Act | 100 employees |
| Notice Required | N/A | 60 days |
Key insight: Virginia has no state WARN Act. Only federal WARN applies to employers with 100+ employees requiring 60 days' notice. Employers with 50-99 employees have no legal notice requirement.
Non-Compete Agreements in Virginia
Non-Competes Are Heavily Scrutinized
Virginia is implementing landmark non-compete restrictions via SB 170. Effective July 2025, non-competes are unenforceable for employees earning under a threshold tied to federal poverty levels. Effective July 2026, ALL non-competes are unenforceable unless the employer provides severance or other compensation — making severance the key to enforceability.
Your Virginia Advantage
Low-wage workers are non-compete-free as of July 2025 — use this to eliminate restrictions
Effective July 2026, ALL non-competes require severance or compensation to be enforceable
You can demand severance simply to "make" a non-compete valid — creating negotiating leverage
Federal OWBPA protections for 40+ workers remain strong
Red Flags in VA Severance Agreements
If your severance agreement includes any of these, you should not sign without further review.
Non-compete clauses without corresponding severance or compensation (unenforceable as of July 2026)
Severance timelines shorter than 60 days after federal WARN-covered mass layoff
Rushed signing deadlines for workers 40+ (OWBPA violation)
Overly broad non-competes (Virginia courts scrutinize scope, time, and geography)
Waiver of right to serve on jury duty or vote
Find Out What Your VA Severance Is Really Worth
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Virginia Severance FAQ
Is severance pay required in Virginia?▼
What is SB 170 and how does it affect me?▼
If I earn below the low-wage threshold, can my employer enforce a non-compete?▼
Can I demand severance simply to validate a non-compete under SB 170?▼
Disclaimer: SeveranceIQ is an educational technology tool, not a law firm. The information on this page about Virginia employment laws is for general educational purposes only and does not constitute legal advice. Laws change frequently. For advice about your specific situation, consult a licensed Virginia employment attorney. Full disclaimer
Severance guides for other states: