Under current Virginia law, noncompete agreements are banned for ‘low-wage employees,’ currently defined as those making less than $1463.10 per week.
Effective July 1, 2025, Virginia will prohibit noncompete agreements with ALL employees eligible for overtime pay under the federal Fair Labor Standards Act (FLSA), known as nonexempt employees, regardless of how much they earn.
This new law will affect any agreements entered into on or after July 1, 2025, and will not be retroactive.
Here is what employers can do:
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Review existing employment contracts to ensure compliance.
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Audit employee classifications to confirm proper FLSA exemption status.
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Work with your employment attorney to consider alternative agreements such as confidentiality or non-solicitation agreements where appropriate.
Employment Law Advice (as part of your Catapult membership) is now offered through Ogletree Deakins. Reach out to Catapult for advice and potential referrals at 866-440-0302 or advice@letscatapult.org