Pursuant to Va. Code § 40.1-28.7:8, the term “Low-wage employee” as applied to covenants not to compete has been calculated by the Virginia Employment Commission to include all employees and independent contractors who earn an average of less than $1,290 per week. Any employer who enters into, enforces, or threatens to enforce a covenant not to compete with any low-wage employee as defined by the statute will be in violation of the statute, and subject to a suit for damages, attorneys’ fees, and liquidated damages, and civil monetary penalties assessed by the Commissioner. Additionally, the section contains a posting requirement for employers which advises, “Every employer shall post a copy of this section or a summary approved by the Department in the same location where other employee notices required by state or federal law are posted.” Posting a copy of the Code will meet the requirements for notice to employees required under the law.

July 1, 2021, the Virginia Overtime Wage Act, Va. Code § 40.1-29.2, goes into effect. This law requires employers in the Commonwealth to pay an overtime wage rate of one and a half times the regular rate for all hours worked in excess of 40 hours in a workweek.

Please review the guidance from the Virginia Department of Emergency Management regarding the “Business Reopening Toolkit”.