Bill
Bill > SB170
summary
Introduced
01/08/2026
01/08/2026
In Committee
02/27/2026
02/27/2026
Crossed Over
02/05/2026
02/05/2026
Passed
Dead
Introduced Session
Potential new amendment
2026 Regular Regular Session
Bill Summary
Protection of employees; covenants not to compete; discharged employees. Provides that no covenant not to compete, as such term is defined in existing law, between an employer and an employee is enforceable if such employer discharges such employee from employment without providing severance benefits or other monetary payment to such employee that is disclosed upon execution of the covenant not to compete, unless the employee is discharged for cause. This bill incorporates SB 569.
AI Summary
This bill modifies existing law regarding "covenants not to compete," which are agreements between an employer and employee that restrict an employee's ability to work for a competitor after leaving their job. The bill states that such agreements are not enforceable if an employer fires an employee without providing them with severance benefits, which are payments made to an employee upon termination of employment. If severance benefits are provided after a discharge, the covenant not to compete is only valid for the length of time the employee receives those benefits, unless the employee was fired for cause. The bill also clarifies that this change does not affect agreements made before July 1, 2026.
Committee Categories
Budget and Finance, Business and Industry
Sponsors (1)
Last Action
Reported from Appropriations (18-Y 4-N) (on 02/27/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://lis.virginia.gov/bill-details/20261/SB170 |
| Fiscal Note/Analysis - Fiscal Impact Statement from Department of Planning and Budget (SB170) | https://lis.blob.core.windows.net/files/1138810.PDF |
| BillText | https://lis.virginia.gov/bill-details/20261/SB170/text/SB170S1 |
| Commerce and Labor Amendment | https://lis.virginia.gov/bill-details/20261/SB170/text/SB170ASC1 |
| Fiscal Note/Analysis - Fiscal Impact Statement from Department of Planning and Budget (SB170) | https://lis.blob.core.windows.net/files/1107545.PDF |
| BillText | https://lis.virginia.gov/bill-details/20261/SB170/text/SB170 |
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