Effective July 1, 2025, Virginia’s noncompete law, Va. Code Ann. § 40.1-28.7:8, has been revised to expand the definition of “low-wage” employees to include all employees classified as non-exempt under the Fair Labor Standards Act (FLSA). The new definition will not apply retroactively to existing agreements. Rather, it will apply to agreements entered into from July 1, 2025, onward. Under the existing law, employers are prohibited from entering into, enforcing, or threatening to enforce a restrictive covenant or noncompete against a “low-wage employee.”
Virginia Expands Definition of ‘Low-Wage’ Employees and Noncompetes
