Document dated Mar. 24, 2025, was received on Apr. 7, 2025 due to a fixed feed.
Bill Provisions
Updated the existing prohibition against an employer entering into, enforcing, or threatening to enforce a covenant not to compete with any low-wage employee.
Expanded ban on non-compete agreements for low-wage employees to include those eligible for overtime pay under federal law, regardless of their average weekly earnings
Defined low-wage employee as employee entitled to overtime after 40 hours a week.
Any employer in violation is subject to a civil penalty of $10,000 for each violation.
Does not affect any contracts, covenants, or agreements prior to Jul. 1, 2025.
Legislative History
On Jan. 8, 2025, bill introduced in Senate; on Jan. 30, 2025, bill passed the Senate.
On Feb. 3, 2025, bill introduced in House; on Feb. 18, 2025, bill passed in the House.
On Mar. 24, 2025, governor signed bill into law, was assigned as Act Chapter 585.
Effectiveness
Bill is effective Jul. 1, 2025.
Regulators
VA LEG
Entity Types
CNSM; Corp
Reference
Ch. 585, Bill SB1218, 3/24/2025; Citation: VA LEG 40.1-3-1-40.1-28.7:8;
