Covenants not to compete; exceptions, civil penalty.
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.
Bill status
in committee
1 of 4 stages cleared
Introduction
Jan 2026
Committee Review
Floor Vote
Governor
Introduced Jan 13, 2026
Last action Feb 3, 2026
Floor votes
How they voted
No floor votes recorded yet.
Full legislative history
Actions timeline
Total actions
5
Key actions
1
Committee
3
Jan 29, 2026
Lower · Passed
Subcommittee recommends continuing to (Voice Vote)
lower
Jan 22, 2026
Committee
Assigned HCL sub: Subcommittee #2
lower
Jan 13, 2026
Committee
Referred to Committee on Labor and Commerce
lower
1 primary · 0 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Alfonso Lopez
DDemocratic
Ask Maddy
·
AI policy assistant
Ask Maddy about HB 949
Scope: VA
Hi! I can help you understand HB 949. What would you like to know?
Try one of these
i
Maddy answers using official bill text and legislative records. Always verify before sharing.
Sources cited inline