As the Virginia General Assembly reconvenes next week, employers and employees alike should take note of the recent employment-related legislation that was vetoed, substituted, or approved by Governor Glenn Youngkin. While a few key measures remain under consideration, a number of worker-friendly bills have been outright rejected—including several that were reintroduced by the Democrat-controlled General Assembly for the second time. In his veto explanations, the governor cited concerns about the impact on business growth and job creation, as well as his desire to refrain from imposing more regulations and bureaucracy on employers, especially small businesses and nonprofits.

What Passed?: The Continued Erosion of Noncompetes

Among the many employment-related bills that passed this year, only one that we tracked survived without a veto or substitute:

• SB1218 - Noncompete Agreements: The existing ban on noncompete clauses, previously limited to "low-wage" workers (those earning less than $1,463.10 per week, according to the Virginia Department of Labor and Industry), has now been extended to all employees eligible for overtime pay. This means that starting on July 1, 2025, restrictive covenants cannot be offered to hourly workers (even if they make more than $76,081.20 per year) or salaried workers who do not meet the white collar exemption of the Fair Labor Standards Act.
  • Employer Takeaway: This represents an expansion of worker rights in Virginia and will impact...

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