Virginia’s Prohibition on Covenants Not to Compete Includes Customer Non-Solicitation Clauses But Not Employee Non-Solicitation Clauses

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Benjamin S. Levine

February 25, 2026

In Sentry Force Security, LLC v. Barrera, the Court of Appeals of Virginia recently addressed whether an employer (Sentry Force) could enforce restrictive covenants against a former “low wage” employee (Barrera) who left Sentry Force, a private security firm, to start his own competing business.  No. 1405-24-4, 2026 Va. App. LEXIS 54 (Va. App. Jan. 27, 2026).

Factual and Procedural Background
Sentry Force hired Barrera in 2021 as an Account Manager, and Barrera signed a Non-Disclosure and Restrictive Covenant Agreement (Agreement) that prohibited him – for two years following the end of his employment relationship with Sentry Force – from soliciting Sentry Force’s employees and customers.

Sentry Force demoted Barrera in 2022 to an Office Manager position with a corresponding reduction in pay.

Sentry Force terminated Barrera’s employment in August 2023 and filed a 10-count complaint against him, alleging breach of the Agreement and related claims based on allegations that Barrera, among other things, established his own competing security company while still working for Sentry Force, solicited several Sentry Force employees to join his company, and diverted two business opportunities from Sentry Force to his company.

In response, Barrera alleged that Sentry Force could not enforce the Agreement against him because he is a low-wage employee.  Virginia law prohibits employers from “enter[ing] into, enforc[ing], or threaten[ing] to enforce a covenant not to compete with any low-wage employee.”  Va. Code § 40.1-28.7:8(B).

Sentry Force sought a declaration that its contract with Barrera does not contain an unenforceable covenant not to compete.  The circuit court denied Sentry Force’s request and Sentry Force appealed.

The Appellate Court’s Decision
On appeal, the Court examined whether a “covenant not to compete” includes provisions prohibiting the solicitation of customers or employees.  The Court held that agreements prohibiting low-wage employees from soliciting the employer’s customers are enforceable under Virginia law, but agreements prohibiting low-wage employees from soliciting the employer’s other employees are not enforceable under Virginia law.

Virginia law defines a “covenant not to compete” as a covenant or agreement, including a provision of a contract of employment, between an employer and employee that restrains, prohibits, or otherwise restricts an individual’s ability, following the termination of the individual’s employment, to compete with his former employer.  A “covenant not to compete” shall not restrict an employee from providing a service to a customer or client of the employer if the employee does not initiate contact with or solicit the customer or client.  Va. Code § 40.1-28.7:8(A).

The Court held that the contract between Sentry Force and Barrera was enforceable to the extent that it barred customer solicitation, as that prohibition was contemplated by the second sentence of Virginia’s definition of a covenant not to compete.  Employee solicitation, however, is not carved out of the statute’s ban and, thus, the Court held that Sentry Force could not enforce the employee non-solicit against Barrera.

Virginia Employer Takeaways
Be aware of the laws governing restrictive covenants in Virginia, including the enforceability of non-competes and non-solicitation provisions, and how they apply to low-wage earners.  Identify your low-wage employees (in 2026, the low-wage employee threshold is $1,507.01 per week, or $78,364.52 annually) and then audit and revise, as necessary, the restrictive covenant provisions that you have with them.  You can be penalized for attempting to enforce unlawful restrictive covenants, so be extra careful in this space.

 

The author of this article, Benjamin S. Levine, is a member of the Bars of New Jersey and Pennsylvania.  This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice in New Jersey, Pennsylvania, Virginia, or any other jurisdiction, nor does it establish an attorney-client relationship with any reader of the article where one does not exist.  Always consult an attorney with specific legal issues.

 
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