Virginia Bans Non-Competes for Certain Employees

Beginning July 1, 2020, Virginia began prohibiting employers from entering non-competes with employees who make less than the average weekly wage. The law states:

No employer shall enter into, enforce, or threaten to enforce a covenant not to compete with any low-wage employee.

The term “low-wage employee” is defined as:

An employee whose average weekly earnings, calculated by dividing the employee’s earnings during the period of 52 weeks immediately preceding the date of termination of employment by 52, or if an employee worked fewer than 52 weeks, by the number of weeks that the employee was actually paid during the 52-week period, are less than the average weekly wage of the Commonwealth…

The average weekly wage fluctuates and is set by the Virginia Department of Labor each year. At the time of the law’s adoption in 2020, the weekly salary threshold was $1,137 per week, or $59,125 annually.  In 2024, the weekly salary threshold is $1,410 per week, or $73,320 annually.  If you make below this threshold, your employer cannot enter into a non-compete agreement with you.

Here is a copy of the law: https://lis.virginia.gov/cgi-bin/legp604.exe?201+ful+SB480ER.

Do you need help with a Virginia non-compete? Feel free to call our office for a  consultation.