Virginia and Wyoming are the latest states to update their laws concerning noncompete agreements, with new regulations taking effect on July 1, 2025. These changes align with a broader national trend to limit restrictive covenants while still balancing employer needs.
Here’s what employers need to know and how the updates could impact your business.
Virginia expanded worker protections by updating the “Low-Wage Employees” definition covered under the noncompete ban.
July 1, 2020 – June 30, 2025: A low-wage worker in Virginia is an employee earning less than the state’s average weekly wage. For example, in 2025, the average weekly wage is $1,463.10 (roughly $76,081 per year).
Starting July 1, 2025: Low-wage employees include anyone eligible for overtime pay under federal law (working over 40 hours a week), regardless of their weekly earnings. The term will now cover all “non-exempt” employees as defined under the Fair Labor Standards Act (FLSA).
The amendment does not apply to agreements entered before July 1, 2025.
Wyoming’s law (Senate File 107) bans noncompete agreements in most situations. It applies only to contracts entered on or after July 1, 2025.
Comprehensive Ban: The law voids noncompete agreements that restrict compensation for both skilled and unskilled labor. However, agreements signed before July 1, 2025 remain...
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