I never heard of "Valley Formal" before, so this must be a term that was made up by businesses, corporations, or people who don originate from Silicon Valley. If you in any company that requires a dress code in the Valley, that means the parent company or HQ must be from the East Coast, or the managing higher ups have an "East Coast dress code" mindset.
You not going to find many companies that originated from the Valley requiring a "dress code" at all; that concept doesn even exist. Your wear jeans when it cold, and shorts when it hot. That pretty much the "dress code" in the Valley. In other words, nobody cares what you wear to work, as most engineers pretty talk more the beauty of code, rather than the beauty of work fashion. That is of course, unless you a sales/marketing person, a lawyer, real estate agent, etc., who require you to wear a formal suit.
My guess is that you saw this on an Event invite? Most folks are answering about day-to-day dress code. As they say, if you find a valley company with a dress code, run away screaming.
I have, however, seen invites to specific events which use terminology like "valley formal". I, personally, interpret it to mean something like slacks and a polo (or button down shirt). Basically I make sure that I have shoes and long pants. :)
It is also very true that your dress depends upon your role. As an Engineer/Engineering Manager, I can get away with much more casual dress than the Sales guy.
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