VA SB1387 | 2019 | Regular Session


Spectrum: Bipartisan Bill
Status: Engrossed on January 17 2019 - 50% progression
Action: 2019-02-12 - Passed by indefinitely in Commerce and Labor (12-Y 7-N)
Text: Latest bill text (Engrossed) [HTML]


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 measure 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 requires all employers to post in the workplace a notice of the bill's 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.

Tracking Information

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Low-wage employees; covenants not to compete, civil penalty.


Roll Calls

2019-02-12 - House - House: Passed by indefinitely in Commerce and Labor (12-Y 7-N) (Y: 12 N: 7 NV: 3 Abs: 0) [PASS]
2019-01-18 - Senate - Senate: Read third time and passed Senate (37-Y 3-N) (Y: 37 N: 3 NV: 0 Abs: 0) [PASS]
2019-01-16 - Senate - Senate: Constitutional reading dispensed (40-Y 0-N) (Y: 40 N: 0 NV: 0 Abs: 0) [PASS]
2019-01-14 - Senate - Senate: Reported from Commerce and Labor with amendment (11-Y 1-N 1-A) (Y: 11 N: 1 NV: 0 Abs: 1) [PASS]


2019-02-12HousePassed by indefinitely in Commerce and Labor (12-Y 7-N)
2019-01-22HouseReferred to Committee on Commerce and Labor
2019-01-22HouseRead first time
2019-01-22HousePlaced on Calendar
2019-01-18SenateRead third time and passed Senate (37-Y 3-N)
2019-01-17SenatePrinted as engrossed 19100439D-E
2019-01-17SenateEngrossed by Senate as amended SB1387E
2019-01-17SenateCommittee amendment agreed to
2019-01-17SenateReading of amendment waived
2019-01-17SenateRead second time
2019-01-16SenateConstitutional reading dispensed (40-Y 0-N)
2019-01-14SenateReported from Commerce and Labor with amendment (11-Y 1-N 1-A)
2019-01-08SenateReferred to Committee on Commerce and Labor
2019-01-08SenatePrefiled and ordered printed; offered 01/09/19 19100439D

Code Citations

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

Virginia State Sources

Bill Comments