Effective July 1, 2025, the current Virginia statutory restriction on non-competition agreements for “low-wage employees” will expand to cover all non-exempt employees under the Fair Labor Standards Act (FLSA). This amendment, enacted through SB 1218 and signed into law on March 24, 2025, prohibits employers from entering into, enforcing, or threatening to enforce non-compete agreements with any employee classified as non-exempt under the FLSA, regardless of their earnings level.
Previously, Virginia’s non-compete ban, codified at Va. Code § 40.1-28.7:8 and effective since 2020, applied only to employees earning less than the Commonwealth’s average weekly wage (currently $1,463.10 per week or $76,081.14 annually). The new amendment broadens the definition of “low-wage employee” to include all employees entitled to overtime pay, thereby covering a larger segment of the workforce.Continue Reading Virginia expands non-compete restrictions to cover all non-exempt employees