VirginiaSB12182025 Regular SessionSenate

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

Sponsored By: Richard H. Stuart (Republican)

To Governor

Summary

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.

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Bill Overview

No Economic Impacts Identified for this Bill

Sponsors & Cosponsors

Sponsor

  • Richard H. Stuart

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 201 • No: 58

House vote • 2/18/2025

Passed House

Yes: 49 • No: 47

House vote • 2/13/2025

Reported from Labor and Commerce

Yes: 12 • No: 10

House vote • 2/11/2025

Subcommittee recommends reporting

Yes: 8 • No: 0 • Other: 1

Senate vote • 1/30/2025

Passed Senate Block Vote

Yes: 40 • No: 0

Senate vote • 1/30/2025

Constitutional reading dispensed Block Vote (on 3rd reading)

Yes: 39 • No: 1

Senate vote • 1/29/2025

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 38 • No: 0

Senate vote • 1/27/2025

Reported from Commerce and Labor with substitute

Yes: 15 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0585)

    3/24/2025Governor
  2. Approved by Governor-Chapter 585 (Effective 07/01/25)

    3/24/2025Governor
  3. Governor's Action Deadline 11:59 p.m., March 24, 2025

    3/5/2025Governor
  4. Enrolled Bill Communicated to Governor on March 5, 2025

    3/5/2025Senate
  5. Fiscal Impact Statement from Department of Planning and Budget (SB1218)

    2/24/2025Senate
  6. Signed by President

    2/23/2025Senate
  7. Bill text as passed Senate and House (SB1218ER)

    2/20/2025Senate
  8. Enrolled

    2/20/2025Senate
  9. Signed by Speaker

    2/20/2025House
  10. Passed House (49-Y 47-N)

    2/18/2025House
  11. Read third time

    2/18/2025House
  12. Read second time

    2/17/2025House
  13. Reported from Labor and Commerce (12-Y 10-N)

    2/13/2025House
  14. Fiscal Impact Statement from Department of Planning and Budget (SB1218)

    2/12/2025Senate
  15. Subcommittee recommends reporting (8-Y 0-N)

    2/11/2025House
  16. Assigned L & C sub: Subcommittee #2

    2/4/2025House
  17. Referred to Committee on Labor and Commerce

    2/3/2025House
  18. Read first time

    2/3/2025House
  19. Placed on Calendar

    2/3/2025House
  20. Passed Senate Block Vote (40-Y 0-N)

    1/30/2025Senate
  21. Constitutional reading dispensed Block Vote (on 3rd reading) (39-Y 1-N)

    1/30/2025Senate
  22. Rules suspended

    1/30/2025Senate
  23. Engrossed by Senate - committee substitute

    1/30/2025Senate
  24. Commerce and Labor Substitute agreed to

    1/30/2025Senate
  25. Reading of substitute waived

    1/30/2025Senate

Bill Text

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