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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

In the last week, the Trump Administration issued numerous executive orders related to immigration policy. The Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE), and other authorized agencies will likely initiate more administrative inspections (i.e., inspections of Form I-9, Employment Eligibility Verification) and worksite enforcement actions. Employers should review their operations and prepare for possible government visits.Continue Reading Immigration enforcement underway: Preparing for I-9 inspections and site visits 

Beginning October 1, 2024, Maryland will require employers to disclose wage ranges and “other compensation” in job postings and upon the request of an applicant in an effort to promote greater wage transparency in the hiring process. The Maryland Wage Range Transparency Act amends the state’s existing law prohibiting employers from making salary history inquiries to now include these job posting wage transparency requirements. Maryland joins a growing number of states that have passed job posting pay disclosure requirements, including California, Colorado, Connecticut, the District of Columbia, Hawaii, Illinois, Minnesota, Nevada, New York, Rhode Island, and Washington.

Maryland’s new pay disclosure requirements apply both to external and internal job postings and cover any solicitation intended to recruit applicants for a specific available position. It also applies to any job posting for a job where work will be “physically performed at least in part” in Maryland but does not explain what “in part” means, leaving employers to guess if a single day or several months meets the test, or whether a remote worker who comes to periodic meetings in Maryland is covered. Continue Reading Maryland joins the growing list of states requiring pay disclosure in job postings

The U.S. Supreme Court agreed to review a case on appeal from the Fourth Circuit involving the burden of proof required for an employer to show that an employee’s job position is exempt from overtime under the Fair Labor Standards Act (FLSA). The high court’s decision will have a notable impact on the ability of employers to defend misclassification claims brought under the FLSA.

While the Fifth, Sixth, Seventh, Ninth, Tenth, and Eleventh Circuits have applied the “preponderance of the evidence” standard, the Fourth Circuit has repeatedly applied the notably higher “clear and convincing” standard, including most recently in Carrera v. EMD Sales, 75 F.4th 345 (4th Cir. Jul. 27, 2023). The Court agreed to review the Fourth Circuit’s decision in Carrera to resolve this split among the federal circuits on the appropriate burden of proof for FLSA exemptions.Continue Reading U.S. Supreme Court agrees to resolve the split between the Circuits on the burden of proof for FLSA exemptions

On April 23, 2024, the U.S. Department of Labor (DOL) announced a final regulatory rule that will raise the minimum salary threshold for employees who are classified as “exempt” under the white-collar exemptions to the Fair Labor Standards Act (FLSA) in two steps: first in July 1, 2024, and then again in January 1, 2025. The new rule also creates a mechanism for subsequent automatic increases every three years thereafter based on then-current economic data, with the next increase slated for July 1, 2027. 

This new rule comes after the DOL proposed these changes last year in August 2023. Under the FLSA and DOL regulations, for an employee to be properly classified as “exempt” from overtime, the employee must be paid at least the minimum salary threshold and the employee’s job position must also meet certain tests regarding their job duties (namely exemptions for job duties performed by executive, administrative, professional, outside sales and computer employees, commonly referred to as the “white collar” exemptions).Continue Reading U.S. Department of Labor mandates two salary threshold increases for white collar FLSA exemptions and a mechanism for future automatic increases

On August 30, 2023, the U.S. Department of Labor (DOL) proposed a regulatory rule that would raise the minimum salary threshold for employees who are classified as “exempt” under the white collar exemptions to the Fair Labor Standards Act (FLSA) by nearly 55 percent. The proposed rule would also create a new mechanism for subsequent…

Beginning August 1, 2023, the U.S Department of Homeland Security and U.S. Citizenship and Immigration Services (USCIS) have now established a new procedure to allow employers who participate in E-Verify and are in good standing, to conduct remote inspection of an employee’s documents when completing Form I-9. USCIS has also released an updated version of…

In an opinion letter published this week, the U.S. Department of Labor’s Wage and Hour Division (“DOL”) clarified how employers should calculate an employee’s Family and Medical Leave Act (“FMLA”) leave entitlement when the leave is taken during a week that includes a holiday.

The FMLA regulations are clear that when an employee takes a…

The General Counsel for the National Labor Relations Board (“NLRB”) issued a landmark memorandum yesterday broadly opining that most non-compete agreements violate Section 7 of the National Labor Relations Act (“NLRA”) and directing the NLRB’s various regions to make challenging overbroad non-compete agreements an enforcement priority. After the NLRB’s sweeping decision this February in McLaren …

As the 2023 Virginia legislative session comes to a close, Governor Glenn Youngkin signed into law two new pieces of legislation that will expand the Commonwealth’s existing restriction on employee confidentiality agreements and restrict how employers may use employee social security numbers. Both new laws go into effect July 1, 2023.

Expanded prohibition on confidentiality…