New noncompete statues in Virginia, Arkansas and Wyoming will go into effect this summer, according to an April 3 report by The National Law Review.
Here’s an overview of each new statute:
1. Virginia:
- Effective date: July 1
- Changes: The new law includes an expanded definition of “low-wage workers” who cannot be bound by noncompete agreements. The new definition includes all employees entitled to overtime pay for working more than 40 hours per week, regardless of their average weekly earnings.
- The new law is not retroactive, and existing noncompete agreements that were compliant with previous laws will remain valid.
- Employers must update their employee notice posting to reflect the new law.
2. Arkansas:
- Effective date: July 15
- Changes: Noncompetes with physicians that would restrict the physician’s ability to practice are not enforceable.
- The term “physician” includes any person authorized or licensed to practice medicine or osteopathy in Arkansas.
3. Wyoming:
- Effective date: July 1
- Changes: All noncompete agreements are void except in certain circumstances, including:
- Contracts related to the purchase and sale of a business or its assets.
- Agreements protecting trade secrets.
- Agreements involving executive and management personnel or professional staff.
- Agreements regarding repayment for training and expense relocation reimbursement agreements are void unless they meet “strict” statutory requirements.
- Noncompete agreements with physicians are voided. Physicians can disclose their ongoing practice and new contact information to patients with rare disorders that were under their treatment before leaving their previous employer.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.