Trade Secrets & Employee Mobility

Virginia is poised to impose new limitations on the circumstances in which employers may restrict employees from working for a competitor or engaging in other competing business activities. As we reported in 2020, the Commonwealth first prohibited noncompete agreements for “low-wage” workers. Then as we reported in 2025, Virginia expanded those restrictions to prohibit noncompetes with employees who are entitled to overtime pay under the FLSA for any hours worked in excess of 40 hours in any one workweek (“non-exempt employees”).

In the last couple of years, there have been a number legislative efforts, at both the state and federal level, to limit the use of non-competes in the U.S. economy, particularly with respect to low wage and entry level workers.  Recent bills introduced in the Senate indicate there is a strong opportunity for a bipartisan path to enactment of such a law by the U.S. Congress.

Last month, Marco Rubio, one of Florida’s U.S. Senators and a previous Republican candidate for President, introduced legislation in the Senate – the “Freedom to Compete Act” – which would set limits on ...