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SB 1218

L&E; covenants not to compete prohibited, low-wage employees, exceptions, civil penalty.

2025 Regular Session Introduced by Richard Stuart

Virginia bans non-compete agreements for low-wage employees effective July 1, 2025, with exceptions for legitimate business interests and civil penalties for violations.

Acts of Assembly Chapter text (CHAP0585)
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Bill Summary · SB 1218

Legislative bill overview

SB 1218 prohibits employers in Virginia from enforcing non-compete agreements with low-wage employees, effective July 1, 2025. The bill includes limited exceptions for certain business situations and establishes civil penalties for violations.

Why is this important

Non-compete agreements can restrict workers' ability to change jobs or start competing businesses, which disproportionately affects lower-income employees who have fewer financial resources to fight legal challenges or relocate. This law aims to increase job mobility and wage competition in the low-wage labor market while protecting business interests through carved-out exceptions.

Potential points of contention

  • Wage threshold definition: The bill's definition of "low-wage employee" will determine how many workers are protected; ambiguity could lead to disputes about which workers qualify
  • Business exception scope: Exceptions for legitimate business interests (trade secrets, customer relationships) may be interpreted broadly by employers, potentially limiting the law's practical protections
  • Enforcement burden: The civil penalty mechanism places responsibility on individual employees to identify violations and pursue legal action, which may be challenging for low-wage workers lacking resources for litigation

Compiled from official sources — confirm details with the bill’s official record.

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