Compliance Stuff

Employers in Virginia should be aware of legislation that would make it even harder to enforce non-competes. This is the latest in a series of moves curbing such agreements in the state. Specifically, the Virginia House of Representatives passed a bill on March 4 that would limit an employer’s ability to enforce a non-compete agreement against laid off or fired employees, unless the termination is “for-cause.” The bill, which also passed the state Senate in early February, is now headed to Governor Abigail Spanberger – and we expect her to sign it into law. Here’s what employers in Virginia need to know and a five-step action plan for compliance. New Limit on Enforceability If signed into law, SB 170 will void employee non-competes for workers who are laid off without severance or other compensation. According to the bill, this will apply to all involuntary terminations, except in “for-cause” terminations. These restrictions would apply to all non-compete agreements signed on or afte...

  Waves of mass layoffs during the past two years have generated a new trend: l ayoff influencers who use social media to vent feelings, get assistance with a job search, and find community with other laid-off workers. This trend raises concerns for companies that don’t want misinformation or embarrassing stories about them to be circulated online, and o pens doors potentially to third parties seeking to represent employees in collective bargaining and potential litigation. Quick Hits Some laid-off workers are becoming social media influencers, telling their layoff stories to thousands of followers and outsiders. Former employees generally are not prohibited from criticizing their former employer on social media if their comments are true and not defamatory. To protect their brand and public image, companies can offer severance agreements, including nondisparagement clauses, to laid-off workers. Hundreds of thousands of employees were laid off in 2023, especially in the tech, const...