On January 16th, Virginia implemented significant changes to non-compete agreements, particularly for low-wage earners. Under this law, these agreements cannot be enforced for employees earning below the updated annual salary threshold of $73,320, or an average weekly wage of $1,410.
In light of this change, employers are urged to review their post-employment agreements and non-compete policies to make any necessary updates to adhere to state and federal regulations. Taking action will help to avoid penalties, which can be severe, including fines up to $10,000 per violation.
This legislation reflects a national trend, with groups like the Federal Trade Commission and the National Labor Relations Board moving to limit non-compete clauses across the board.
Based in Maryland? Learn about updates to Maryland’s non-compete agreement laws here.
If you have questions about changes to non-compete regulations in MD or VA, or any other employee issues, please reach out to edgar@officiumdc.com or schedule a meeting here.