Independent Contractor Agreement With Non Compete Clause In Fairfax
Description
Form popularity
FAQ
On Jan. 16, 2024, the Virginia Department of Labor and Industry announced that the average weekly wage for 2024 would be $1,410. As a result, employers are now prohibited from entering, enforcing or threatening to enforce a non-compete agreement with an employee who earns less than $73,320 per year.
As a reminder, Virginia is one of eleven states (along with Washington, D.C.) that imposes restrictions on the use of non-compete agreements for so-called “low wage employees.” Effective now in 2025, the salary threshold defining a “low wage employee” in Virginia has increased from $73,320 to $76,081 annually.
A Virginia Standard Clause limiting an employee's solicitation of employees and customers during the term of the employee's employment and for a specified period after the employment relationship ends. It is intended for use by private employers.
On Jan. 16, 2024, the Virginia Department of Labor and Industry announced that the average weekly wage for 2024 would be $1,410. As a result, employers are now prohibited from entering, enforcing or threatening to enforce a non-compete agreement with an employee who earns less than $73,320 per year.
Covered Employees Non-compete agreements are typically used when an employer hires a worker who will have access to sensitive ideas, practices, or trade secrets. The agreement provides legal penalties if a worker later uses this information to start their own business or obtain employment from a competitor.
The Virginia law that prohibits non-competes for low-wage employees is Virginia Code § 40.1-28., Covenants not to compete prohibited as to low-wage employees. The law also extends to interns, independent contractors, students, apprentices, and trainees.
Chapter 2 – How to Beat Your Virginia Non-Compete Get a copy of the agreement. Have an attorney review the agreement. Don't plan your new business at work! ... Do not advertise your new business until you know your non-compete agreement is not an issue. Be Honest. Seek legal action to determine validity of the agreement.
Do I really need to get a business license in Virginia? Yes! It's true that a lot of self-employed individuals, particularly those who work from home, never get a state or local Virginia business license.
Virginia courts have upheld employment non-competes up to 2 years post-employment. If a non-compete is included in a business sale, it can be enforceable for a longer period, up to 5 years. If an employer's non-compete is for longer than 2 years, unless it is for the sale of a business, it will be held unenforceable.