Low-wage employees; covenants not to compete, civil penalty. (SB1387)

Introduced By

Sen. Frank Wagner (R-Virginia Beach)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

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 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 and "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. Read the Bill »

Status

01/18/2019: Passed the Senate

History

DateAction
01/08/2019Prefiled and ordered printed; offered 01/09/19 19100439D
01/08/2019Referred to Committee on Commerce and Labor
01/14/2019Impact statement from DPB (SB1387)
01/14/2019Reported from Commerce and Labor with amendment (11-Y 1-N 1-A) (see vote tally)
01/16/2019Constitutional reading dispensed (40-Y 0-N) (see vote tally)
01/17/2019Read second time
01/17/2019Reading of amendment waived
01/17/2019Committee amendment agreed to
01/17/2019Engrossed by Senate as amended SB1387E
01/17/2019Printed as engrossed 19100439D-E
01/18/2019Read third time and passed Senate (37-Y 3-N) (see vote tally)

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