Virginia Expands Noncompete Ban for Nonexempt Employees - HR ALERTS
- Regina Dyerly, SHRBP, PHR
- May 23
- 1 min read
Virginia Expands Noncompete Ban for Nonexempt Employees
Effective: July 1, 2025
Effective July 1, 2025, Virginia employers will be prohibited from entering into, enforcing, or threatening to enforce noncompete agreements with employees classified as nonexempt under the Fair Labor Standards Act (FLSA) — regardless of their earnings.
Key Changes Employers Should Know:
The current definition of "low-wage employee" (those earning less than $76,081 per year) will expand to include any nonexempt employee.
Employers violating this rule could face injunctive relief, damages (including liquidated damages), attorneys’ fees and costs, and a $10,000 civil penalty per violation.
Noncompete agreements entered into before July 1, 2025 are not affected by the new law if the employee earns more than $76,081 annually.
Nondisclosure agreements (NDAs) protecting trade secrets and confidential information are still permitted.
Action Item for Employers:
Review and update your noncompete agreement practices immediately.
Evaluate the exempt vs. nonexempt classification of all employees.
Get day-to-day updates on Virginia Expands Noncompete Ban for Nonexempt Employees visit the Vida HR Knowledge Center (Vida HR Clients Exclusive).
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