{"id":1437,"date":"2020-07-01T17:19:06","date_gmt":"2020-07-01T17:19:06","guid":{"rendered":"https:\/\/www.bfvlaw.com\/virginia-law-banning-non-competes-for-low-wage-workers-now-in-effect\/"},"modified":"2020-07-01T17:19:06","modified_gmt":"2020-07-01T17:19:06","slug":"virginia-law-banning-non-competes-for-low-wage-workers-now-in-effect","status":"publish","type":"post","link":"https:\/\/www.bfvlaw.com\/virginia-law-banning-non-competes-for-low-wage-workers-now-in-effect\/","title":{"rendered":"Virginia Law Banning Non-Competes for Low-Wage Workers Now in Effect"},"content":{"rendered":"\n

Earlier this year, we informed<\/a> you that Virginia passed new legislation restricting the use of non-competes for low-wage employees.  This new law<\/a> is now in effect and applies to non-compete agreements entered on or after July 1. <\/p>\n\n\n\n

Updated Guidance for Employers<\/strong>
Below are some guidelines for employers to follow to ensure compliance with this new law.

1. Non-competes for low-wage workers entered on or after July 1 are illegal and, therefore, unenforceable.
– Violations of this statute will result in a civil penalty of $10,000 for each<\/em> violation.
– The law also allows employees to bring a civil action for violations.<\/p>\n\n\n\n

2. Low-wage workers include the following employees:
– Salaried employees earning less than $59,124.00\/year or $1,137.00\/week;
– Hourly employees earning less than $20.30\/hour;
– Independent contractors earning less than $20.30\/hour; and
– Unpaid interns, students, apprentices, and trainees<\/p>\n\n\n\n

3. However, low-wage workers do not<\/strong> include employees who are paid primarily by sales commission, incentives, or bonuses.<\/p>\n\n\n\n

4. This law does not affect non-disclosure and confidentiality agreements to protect confidential information and trade secrets.<\/p>\n\n\n\n

5. Employers are required to post the law or an approved summary in the same place as other federal and state employee notices.
– Failure to post will result in increasing civil penalties up to $1,000.<\/p>\n\n\n\n

Key Takeaways<\/strong>
Now that the law is in effect, employers operating in Virginia should be cautious when issuing or enforcing non-compete agreements for low-wage employees. Even the threat of enforcing a non-compete for a low-wage employee on or after July 1 is a violation of law. Employers should also post the new law in the appropriate location in the workplace as soon as possible to avoid civil penalties. <\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n\n\n\n

Thank you to Allyson R. Mancuso, an Emory University School of Law student and BFV’s 2020 summer associate, for contributing to this article. <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Earlier this year, we informed you that Virginia passed new legislation restricting the use of non-competes for low-wage employees.  This new law is now in effect and applies to non-compete agreements entered on or after July 1. Updated Guidance for EmployersBelow are some guidelines for employers to follow to ensure compliance with this new law. 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