VA HB330 | 2020 | Regular Session

Status

Completed Legislative Action
Spectrum: Partisan Bill (Democrat 1-0)
Status: Passed on April 9 2020 - 100% progression
Action: 2020-04-09 - Governor: Acts of Assembly Chapter text (CHAP0948)
Text: Latest bill text (Chaptered) [HTML]

Summary

Covenants not to compete; low-wage employees; civil penalty. Prohibits an employer from entering into, enforcing, or threatening to enforce a covenant not to compete between the employer and a low-wage employee. The employer is subject to a civil penalty of $10,000 per violation. The bill defines "low-wage employee" as either (i) an employee, intern, student, apprentice, or trainee whose average weekly earnings are less than the average weekly wage of the Commonwealth or who is employed without pay or (ii) an independent contractor who is compensated for his services at an hourly rate that is less than the median hourly wage for the Commonwealth for all occupations as reported by the Bureau of Labor Statistics of the U.S. Department of Labor. The bill defines "covenant not to compete" as an agreement that restrains, prohibits, or otherwise restricts an individual's ability to compete with his former employer. The bill allows any low-wage employee subject to such a covenant not to compete to bring a civil action against an employer and seek appropriate relief, including enjoining the conduct of any person or employer, ordering payment of liquidated damages, and awarding lost compensation, damages, and reasonable attorney fees and costs. The bill provides that if the court finds a violation of the bill's provisions, the plaintiff is entitled to recover reasonable costs, including reasonable fees for expert witnesses, and attorney fees from the former employer or other person who attempts to enforce a covenant not to compete against such plaintiff. The bill requires all employers to post in the workplace a notice of the prohibition or a summary of the notice approved by the Department of Labor and Industry and provides that an employer is subject to a warning for a first offense and to a civil penalty for a subsequent offense for failure to post such notice or approved summary. The provisions of the bill are applicable to covenants not to compete entered into on or after July 1, 2020.

Tracking Information

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Title

Employment; covenants not to compete, definition of low-wage employees, civil penalty.

Sponsors


Roll Calls

2020-03-07 - Senate - Senate: Conference report agreed to by Senate (30-Y 7-N) (Y: 30 N: 7 NV: 3 Abs: 0) [PASS]
2020-03-04 - House - House: VOTE: Agree To (86-Y 6-N) (Y: 86 N: 6 NV: 8 Abs: 0) [PASS]
2020-02-26 - Senate - Senate: Senate insisted on substitute (40-Y 0-N) (Y: 40 N: 0 NV: 0 Abs: 0) [PASS]
2020-02-24 - House - House: VOTE: REJECTED (1-Y 96-N) (Y: 1 N: 96 NV: 3 Abs: 0) [FAIL]
2020-02-20 - Senate - Senate: Passed Senate with substitute (34-Y 5-N) (Y: 34 N: 5 NV: 1 Abs: 0) [PASS]
2020-02-19 - Senate - Senate: Constitutional reading dispensed (39-Y 0-N) (Y: 39 N: 0 NV: 1 Abs: 0) [PASS]
2020-02-17 - Senate - Senate: Reported from Commerce and Labor with substitute (14-Y 1-N) (Y: 14 N: 1 NV: 0 Abs: 0) [PASS]
2020-02-05 - House - House: VOTE: Passage (95-Y 3-N 1-A) (Y: 95 N: 3 NV: 1 Abs: 1) [PASS]
2020-01-30 - House - House: Reported from Labor and Commerce (21-Y 0-N) (Y: 21 N: 0 NV: 1 Abs: 0) [PASS]
2020-01-28 - House - House: Subcommittee recommends reporting (6-Y 0-N) (Y: 6 N: 0 NV: 2 Abs: 0) [PASS]

History

DateChamberAction
2020-04-09 Governor: Acts of Assembly Chapter text (CHAP0948)
2020-04-09 Governor: Approved by Governor-Chapter 948 (effective 7/1/20)
2020-03-20 Governor: Governor's Action Deadline 11:59 p.m., April 11, 2020
2020-03-20HouseEnrolled Bill communicated to Governor on March 20, 2020
2020-03-19HouseSigned by Speaker
2020-03-18SenateSigned by President
2020-03-18HouseBill text as passed House and Senate (HB330ER)
2020-03-18HouseEnrolled
2020-03-07SenateConference report agreed to by Senate (30-Y 7-N)
2020-03-04HouseVOTE: Agree To (86-Y 6-N)
2020-03-04HouseConference report agreed to by House (86-Y 6-N)
2020-03-04HouseConference substitute printed 20109419D-H1
2020-03-04 Conference: Amended by conference committee
2020-03-02SenateSenators: DeSteph, Spruill, Bell
2020-03-02SenateConferees appointed by Senate
2020-02-27HouseDelegates: VanValkenburg, Hurst, Webert
2020-02-27HouseConferees appointed by House
2020-02-27HouseHouse acceded to request
2020-02-26SenateSenate requested conference committee
2020-02-26SenateSenate insisted on substitute (40-Y 0-N)
2020-02-24HouseVOTE: REJECTED (1-Y 96-N)
2020-02-24HouseSenate substitute rejected by House 20108476D-S1 (1-Y 96-N)
2020-02-24HousePlaced on Calendar
2020-02-20SenatePassed Senate with substitute (34-Y 5-N)
2020-02-20SenateEngrossed by Senate - committee substitute HB330S1
2020-02-20SenateCommittee substitute agreed to 20108476D-S1
2020-02-20SenateReading of substitute waived
2020-02-20SenateRead third time
2020-02-19SenateConstitutional reading dispensed (39-Y 0-N)
2020-02-17SenateCommittee substitute printed 20108476D-S1
2020-02-17SenateReported from Commerce and Labor with substitute (14-Y 1-N)
2020-02-06SenateReferred to Committee on Commerce and Labor
2020-02-06SenateConstitutional reading dispensed
2020-02-05HouseVOTE: Passage (95-Y 3-N 1-A)
2020-02-05HouseRead third time and passed House (95-Y 3-N 1-A)
2020-02-04HouseRead second time and engrossed
2020-02-03HouseRead first time
2020-01-30HouseReported from Labor and Commerce (21-Y 0-N)
2020-01-28HouseSubcommittee recommends reporting (6-Y 0-N)
2020-01-14HouseAssigned L & C sub: Subcommittee #1
2020-01-01HouseReferred to Committee on Labor and Commerce
2020-01-01HousePrefiled and ordered printed; offered 01/08/20 20102056D

Same As/Similar To

SB480 (Same As) 2020-04-09 - Governor: Acts of Assembly Chapter text (CHAP0949)

Code Citations

ChapterArticleSectionCitation TypeStatute Text
40128.7:7(n/a)See Bill Text

Virginia State Sources

TypeSource
Summaryhttps://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+HB330
Texthttps://lis.virginia.gov/cgi-bin/legp604.exe?201+ful+HB330+hil
Texthttps://lis.virginia.gov/cgi-bin/legp604.exe?201+ful+HB330S1+hil
Texthttps://lis.virginia.gov/cgi-bin/legp604.exe?201+ful+HB330H1+hil
Texthttps://lis.virginia.gov/cgi-bin/legp604.exe?201+ful+HB330ER+hil
Texthttps://lis.virginia.gov/cgi-bin/legp604.exe?201+ful+CHAP0948+hil
Roll Callhttps://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+H1401V0029+HB0330
Roll Callhttps://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+H14V0122+HB0330
Roll Callhttps://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+HV0413+HB0330
Roll Callhttps://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+S02V0171+HB0330
Roll Callhttps://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+SV0734HB0330+HB0330
Roll Callhttps://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+SV0763HB0330+HB0330
Roll Callhttps://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+HV1241+HB0330
Roll Callhttps://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+SV0992HB0330+HB0330
Roll Callhttps://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+HV1777+HB0330
Roll Callhttps://lis.virginia.gov/cgi-bin/legp604.exe?201+vot+SV1701HB0330+HB0330

Bill Comments

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