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Showing posts with the label covenant not to compete

Virginia Court Expands Non-Compete Ban to Include Some Non-Solicitation Agreements: 5 Steps for Employers

The Court of Appeals of Virginia just issued a surprising ruling that expands the state’s statute banning non-competes for low-wage employees to also include some non-solicitation agreements. The January 27 decision in  Sentry Force Security, LLC v. Barrera  should cause employers in Virginia to revisit their restrictive covenant strategy. Here is what employers need to know and a list of action items you should consider. Enforceability of Non-Solicitation Agreements Against Low-Wage Employees In 2020, the Virginia legislature enacted a law prohibiting employers from entering into or enforcing a post-employment “covenant not to compete” against “low-wage” employees, defined as any employee earning less than the average weekly wage in the Commonwealth ($1507.01 per week in 2026), with limited exceptions.   Lawmakers amended the statute  in 2025 to expand the prohibition to cover any employee who is non-exempt under the Fair Labor Standards Act.  You can read more...