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Labor and employment; covenants not to compete prohibited; exceptions; civil penalty. Provides that, for the purposes of the prohibition in existing law against an employer entering into, enforcing, or threatening to enforce a covenant not to compete with any low-wage employee, "low-wage employee" includes an employee who, regardless of average weekly earnings, is entitled to overtime compensation under federal law for any hours worked in excess of 40 hours in any one workweek. Any employer that violates the bill's provisions is subject to a civil penalty in existing law of $10,000 for each violation.
Introduced
Jan 8, 2025
Last Action
Mar 24, 2025
Session
VA 2025
Sponsors
1 primary · 0 co
Approved by Governor-Chapter 585 (Effective 07/01/25)
Acts of Assembly Chapter text (CHAP0585)
Governor's Action Deadline 11:59 p.m., March 24, 2025
Enrolled Bill Communicated to Governor on March 5, 2025
Fiscal Impact Statement from Department of Planning and Budget (SB1218)
Signed by President
Bill text as passed Senate and House (SB1218ER)
Signed by Speaker
Enrolled
Read third time
Passed House (49-Y 47-N)
Read second time
Reported from Labor and Commerce (12-Y 10-N)
Fiscal Impact Statement from Department of Planning and Budget (SB1218)
Subcommittee recommends reporting (8-Y 0-N)
Assigned L & C sub: Subcommittee #2
Referred to Committee on Labor and Commerce
Placed on Calendar
Read first time
Read second time
Passed Senate (40-Y 0-N)
Constitutional reading dispensed (on 3rd reading) (39-Y 1-N)
Rules suspended
Engrossed by Senate - committee substitute
Commerce and Labor Substitute agreed to
Reading of substitute waived
Constitutional reading dispensed (on 1st reading) (38-Y 0-N)
Passed by for the day
Rules suspended
Committee substitute printed 25106097D-S1
Reported from Commerce and Labor with substitute (15-Y 0-N)
Referred to Committee on Commerce and Labor
Prefiled and ordered printed; Offered 01-08-2025 25103924D
Get a plain-English explanation of what this bill does, who it affects, and why it matters.
Acts of Assembly Chapter text (CHAP0585)
Richard H. Stuart