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...

Reductions in force and furloughs are on the rise. Recent layoff numbers are climbing. We’re seeing some of the highest monthly totals ever recorded. If your company is considering a RIF, thorough preparation is key. Identify and document the reason for the layoff and the criteria that will be used to select impacted employees. Determine whether there will be union notice and bargaining requirements. Review severance plans, employment agreements, and offer letters to assess separation entitlements. And don’t forget about the federal WARN Act and the 13 state mini-WARN Acts, which require as much as 90 days’ notice for some layoffs. Once selections are made, consider whether a statistical adverse impact analysis is needed to identify risks. Prepare Older Worker Benefit Protection Act disclosures. Establish a process for how to deal with employees on leaves and visas. And confirm timing of final pay and PTO payouts, which may vary from state to state. Finally, have a clear and consis...