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Can a home care agency make caregivers sign a non-compete in Virginia?
Last verified October 17, 2026 · All Virginia resources
Banned below wage threshold. Virginia bans non-competes for all FLSA non-exempt (overtime-eligible) employees and for anyone earning less than the state average weekly wage, about $78,365 a year in 2026. Hourly caregivers are covered either way. Since 2026-07-01 the ban also covers health care professionals certified by the Board of Nursing, which includes certified nurse aides. Employers can face civil penalties of up to $10,000 per violation and must post a notice of the law.
| Status | Banned below wage threshold |
|---|---|
| Wage threshold | Non-competes are banned for low-wage employees: anyone entitled to overtime under the FLSA, regardless of pay, and anyone whose average weekly earnings are below the state average weekly wage. That figure is $1,507.01 a week (about $78,365 a year) from 2026-07-01. |
| Healthcare-specific rule | Employers may not enter into, enforce or threaten to enforce a non-compete with any health care professional, defined as anyone licensed, registered or certified by the Boards of Medicine, Nursing, Counseling, Optometry, Psychology or Social Work. Material-contact customer non-solicitation and repayment of recruitment costs are still allowed for health care professionals. |
| Client non-solicitation | A covenant not to compete cannot stop a low-wage employee from serving a customer or client if the employee does not initiate contact or solicit them. Employers of health care professionals may use non-solicitation clauses limited to customers the employee had material contact with. |
| Notice requirements | Employers must post a copy of the statute or an approved summary with other required workplace notices; penalties apply for failing to post. |
| Statute | Va. Code § 40.1-28.7:8 |
| Latest change | 2026-07-01 |
What about a client hiring your caregiver directly?
That is usually handled in the client service agreement, not the caregiver's contract: some agencies charge a placement or conversion fee if a client hires a caregiver directly. Whether that clause is enforceable is a contract question, so have a local employment lawyer review it.
What should you confirm?
A law firm survey reports a separate 2026 law requiring severance or other payment before enforcing a non-compete against an employee discharged without cause; not confirmed in the statute text reviewed.
General information, not legal advice.
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