Under Virginia law, employers may not enter into, enforce, or threaten to enforce a covenant not to compete with any “low-wage employee.” Previously, a “low-wage employee” meant one who earns less than the average weekly wage in the Commonwealth.
Now, “low-wage employee” also means an employee who, regardless of their average weekly earnings, is eligible for overtime under the Fair Labor Standards Act, i.e., a non-exempt employee.
You can find the full text of the amending bill here. The amendments go into effect on July 1, 2025, and do not affect any agreements entered into prior to that date.
