Low-wage employees; covenants not to compete, civil penalty.
Summary
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.
Bill status
in committee
3 of 5 stages cleared
Introduction
Jan 2019
Committee Review
Jan 2019
Senate Passage
Jan 2019
House of Delegates Passage
Governor
Introduced Jan 8, 2019
Last action Jan 22, 2019
Floor votes · Senate Jan 16, 2019
How they voted
34–0
Passed
Total votes 34
Jan 16, 2019
D
Democratic14
100% Yea
R
Republican20
100% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
11
Key actions
2
Committee
3
Amendments
2
Jan 22, 2019
Committee
Referred to Committee on Commerce and Labor
lower
Jan 17, 2019
Introduced
Engrossed by Senate as amended SB1387E
upper
Jan 17, 2019
Upper · Passed
Committee amendment agreed to
upper
Jan 17, 2019
Introduced
Reading of amendment waived
upper
Jan 16, 2019
Senate · Passed
Senate Vote: pass (34-0)
senate
Jan 8, 2019
Committee
Referred to Committee on Commerce and Labor
upper
Jan 8, 2019
Introduced
Prefiled and ordered printed; offered 01/09/19 19100439D
upper
1 primary · 1 co-sponsor
Sponsors
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