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2020 SESSION
HB 330 Employment; covenants not to compete, definition of low-wage employees, civil penalty.
Introduced by: Schuyler T. VanValkenburg | all patrons ... notes | add to my profiles
SUMMARY AS PASSED: (all summaries)
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 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 bill 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 provides that if the court finds a violation of the bill's provisions, the plaintiff is entitled to recover reasonable costs, including reasonable fees for expert witnesses, and attorney fees from the former employer or other person who attempts to enforce a covenant not to compete against such plaintiff. The bill requires all employers to post in the workplace a notice of the 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. The provisions of the bill are applicable to covenants not to compete entered into on or after July 1, 2020. This bill is identical to SB 480.
FULL TEXT
- 01/01/20 House: Prefiled and ordered printed; offered 01/08/20 20102056D pdf | impact statement
- 02/17/20 Senate: Committee substitute printed 20108476D-S1 pdf | impact statement
- 03/04/20 House: Conference substitute printed 20109419D-H1 pdf | impact statement
- 03/18/20 House: Bill text as passed House and Senate (HB330ER) pdf | impact statement
- 04/09/20 Governor: Acts of Assembly Chapter text (CHAP0948) pdf
AMENDMENTS
HISTORY
- 01/01/20 House: Prefiled and ordered printed; offered 01/08/20 20102056D
- 01/01/20 House: Referred to Committee on Labor and Commerce
- 01/14/20 House: Assigned L & C sub: Subcommittee #1
- 01/28/20 House: Subcommittee recommends reporting (6-Y 0-N)
- 01/30/20 House: Reported from Labor and Commerce (21-Y 0-N)
- 02/03/20 House: Read first time
- 02/04/20 House: Read second time and engrossed
- 02/05/20 House: Read third time and passed House (95-Y 3-N 1-A)
- 02/05/20 House: VOTE: Passage (95-Y 3-N 1-A)
- 02/06/20 Senate: Constitutional reading dispensed
- 02/06/20 Senate: Referred to Committee on Commerce and Labor
- 02/17/20 Senate: Reported from Commerce and Labor with substitute (14-Y 1-N)
- 02/17/20 Senate: Committee substitute printed 20108476D-S1
- 02/19/20 Senate: Constitutional reading dispensed (39-Y 0-N)
- 02/20/20 Senate: Read third time
- 02/20/20 Senate: Reading of substitute waived
- 02/20/20 Senate: Committee substitute agreed to 20108476D-S1
- 02/20/20 Senate: Engrossed by Senate - committee substitute HB330S1
- 02/20/20 Senate: Passed Senate with substitute (34-Y 5-N)
- 02/24/20 House: Placed on Calendar
- 02/24/20 House: Senate substitute rejected by House 20108476D-S1 (1-Y 96-N)
- 02/24/20 House: VOTE: REJECTED (1-Y 96-N)
- 02/26/20 Senate: Senate insisted on substitute (40-Y 0-N)
- 02/26/20 Senate: Senate requested conference committee
- 02/27/20 House: House acceded to request
- 02/27/20 House: Conferees appointed by House
- 02/27/20 House: Delegates: VanValkenburg, Hurst, Webert
- 03/02/20 Senate: Conferees appointed by Senate
- 03/02/20 Senate: Senators: DeSteph, Spruill, Bell
- 03/04/20 Conference: Amended by conference committee
- 03/04/20 House: Conference substitute printed 20109419D-H1
- 03/04/20 House: Conference report agreed to by House (86-Y 6-N)
- 03/04/20 House: VOTE: Agree To (86-Y 6-N)
- 03/07/20 Senate: Conference report agreed to by Senate (30-Y 7-N)
- 03/18/20 House: Enrolled
- 03/18/20 House: Bill text as passed House and Senate (HB330ER)
- 03/18/20 Senate: Signed by President
- 03/19/20 House: Signed by Speaker
- 03/20/20 House: Enrolled Bill communicated to Governor on March 20, 2020
- 03/20/20 Governor: Governor's Action Deadline 11:59 p.m., April 11, 2020
- 04/09/20 Governor: Approved by Governor-Chapter 948 (effective 7/1/20)
- 04/09/20 Governor: Acts of Assembly Chapter text (CHAP0948)