Noncompete provisions continue to be governed by a constantly changing patchwork of state level legislation. In general, recent laws tend to limit their use among low wage earners or individuals in certain professions, such as health care workers or veterinarians.

In July, amendments to such laws will go into effect in Virginia, Arkansas, and a newly issued statute will go into effect in Wyoming. A summary of each follow.

Virginia

• Effective Date: July 1.
• Statute: SB 1218.
• Existing Law: Pursuant to § 40.1-28.7:8 of the Virginia Code, low wage employees in Virginia may not be bound by noncompete agreements. Prior to SB 1218, low wage employees included any employee with average weekly earnings that are less than the average weekly wage of the Commonwealth.
• Key Changes:
  • The new law expands the definition of “low wage workers” who cannot be bound by noncompete agreements to include all employees entitled to overtime pay for working more than 40 hours a week, regardless of their average weekly earnings.
  • The law is not retroactive, meaning existing noncompete agreements that were compliant with previous laws will remain valid.
  • Employers must update their employee notice postings to reflect the new law, specifically Virginia Code § 40.1-28.7:8, or provide an updated summary from the Department of Labor and Industry.

Arkansas

• Effective Date: July 15.
• Statute: SB 139.
• Existing Law: Prior to SB 139, Section 4-75-101 of the Arkansas Code stated that covenants not to...

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