VA SB170

Prohibits employers from enforcing non-compete agreements against employees who are discharged without cause unless the employer provides severance benefits or other monetary payment disclosed at the time the agreement was signed

Maintains existing prohibition on non-compete agreements with "low-wage employees," defined as those earning below the Commonwealth's average weekly wage or entitled to overtime compensation

Allows employees to bring civil lawsuits against employers who attempt to enforce prohibited non-compete agreements, with remedies including voiding the agreement, liquidated damages, lost compensation, and attorney fees

Imposes a $10,000 civil penalty per violation for employers who enter into or enforce prohibited non-compete agreements

Takes effect July 1, 2026, and does not apply to contracts entered into, amended, or renewed before that date