News & Analysis as of

Severance Pay

Fisher Phillips

California Governor Aims to Soften AI’s Impact on Workers Through New Executive Order: What Employers Need to Know

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Governor Gavin Newsom just signed a sweeping executive order right before the holiday weekend directing California state agencies to study potential workforce disruptions caused by AI so they can protect displaced workers...more

Offit Kurman

Virginia Moves to Further Restrict Non-Compete Agreements

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Virginia continues to restrict non‑compete covenants. On April 13, 2026, Governor Spanberger signed Senate Bill 170 (“SB 170”) SB170 - 2026 Regular Session | LIS, into law. SB 170 will materially limit the enforceability of...more

BakerHostetler

Virginia Expands Noncompete Restrictions

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Virginia has enacted new legislation, SB 170, which amends Virginia Code Section 40.1-28.7:8 and further restricts the enforceability of noncompete agreements in the Commonwealth. Effective July 1, post-termination covenants...more

Miles & Stockbridge P.C.

Virginia and Washington State Enact Sweeping Noncompete Restrictions: What Employers Need to Know

Two states on opposite coasts are reshaping the rules governing noncompete agreements in their jurisdictions. Virginia has amended its law to prohibit enforcement of noncompetes against employees who are terminated without...more

Foley & Lardner LLP

2026 Virginia Noncompete Law: What Employers Need to Know

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Virginia’s new noncompete law — effective July 1, 2026 — bans noncompete agreements if an employer terminates an employee without cause and does not provide severance benefits or other monetary compensation. Employers should...more

Skadden, Arps, Slate, Meagher & Flom LLP

Virginia’s New Restrictions on Noncompetition Agreements: Key Implications for Employers

On April 13, 2026, Virginia Gov. Abigail Spanberger (D) signed into law Senate Bill 170 (the Act), which amends Virginia’s existing restrictions on employee noncompetition agreements....more

Mayer Brown

France: Reducing Unfair Damages Exposure in Collective Economic Dismissals - a Key Ruling From the French Supreme Court

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When French companies with 50 employees or more carry out economic dismissals affecting at least 10 employees within a 30-day period, they are required to implement a Plan de Sauvegarde de l'Emploi, commonly referred to as...more

Kohrman Jackson & Krantz LLP

Sixth Circuit Affirms Standards for Enforceable Release Agreements

The U.S. Court of Appeals for the Sixth Circuit recently reaffirmed the standards governing when an employee’s release of claims is considered “knowing and voluntary.” The decision, Nakisha West v. Dow Chemical...more

Parker Poe Adams & Bernstein LLP

Alleged Lack of Understanding Insufficient Grounds to Void Release Agreement

This week, the Sixth Circuit Court of Appeals (which includes Tennessee) rejected an attempt by a terminated employee to evade the terms of a waiver and settlement agreement she signed in conjunction with her departure. In...more

Constangy, Brooks, Smith & Prophete, LLP

Age law saves employer in lawsuit having zero to do with age

Older Workers Benefit Protection Act to the rescue! In a race-sex-retaliation case. Years ago, I used to whine about the federal Older Workers Benefit Protection Act, which imposes specific requirements on employers...more

Littler

Virginia General Assembly Sends Bill Limiting Non-Competes to Governor’s Desk

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On March 4, 2026, the Virginia General Assembly approved Senate Bill No. 170, which amends the existing non-compete statute to limit the enforceability of restrictive covenants for certain terminated employees. If enacted,...more

Seyfarth Shaw LLP

Virginia Moves to Protect Laid Off Workers

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Virginia’s Senate Bill 170 (2026 Session) introduces new limitations on the enforceability of restrictive covenants by protecting employees who are terminated without cause. More specifically, the proposed amendment will...more

DLA Piper

New Year’s Update On Federally Regulated Employer Requirements

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Going into the New Year, federally regulated employers should review and consider their compliance with federal labour and employment obligations, including termination entitlements, pay equity, and accessibility. A brief...more

Morgan Lewis

Rethinking Workforce Reductions: Considering Voluntary Separation Programs

Morgan Lewis on

Voluntary separation programs can provide benefits to employees and employers alike, including, for the former, empowering workers to make informed decisions about their employment status and, for the latter, strategically...more

Offit Kurman

Severance Packages: Best Practices for Calculating and Communicating Them

Offit Kurman on

Severance decisions sit at the intersection of legal risk, employee relations, and business judgment. For employers, the challenge is not simply deciding whether to offer severance, but determining how much to offer, under...more

Constangy, Brooks, Smith & Prophete, LLP

Bad luck for this employer with separation agreement

But, then, don't we make our own luck? Happy Friday the 13th, aka Valentine’s Day Eve. I don't love what this employer did, so I'm going with Friday the 13th. A legal assistant in Santa Fe, New Mexico, who was...more

Clark Hill PLC

Are Severance Payments Wages Under Colorado Law?

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The Colorado Court of appeals confirmed that severance payments are not “wages” under Colorado law. In Sommers v. MarketPlace Realty, LLC, decided Dec. 24th, Jonathan Sommers was hired as Chief Financial Officer under a...more

Littler

The Netherlands: Risks of Dormant Employment

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A recent decision by the Gelderland District Court shows yet again that dormant employment in the Netherlands comes with risks. In this article, we briefly set out what dormant employment is and what the associated risks are....more

Ius Laboris

A Win for Hong Kong Employees: New Law Expands Access to Statutory Benefits

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Effective from January 2026, a new law in Hong Kong will broaden the definition of a ‘continuous contract’, making it easier for employees to qualify for statutory employment benefits. We look at the details below....more

Latham & Watkins LLP

German Federal Labour Court Rules on Virtual Share Options and Exit Bonuses

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The German Federal Labour Court has tightened its case law. According to a decision from 19 March 2025 (10 AZR 67/24), the reasons for which were only recently published, employees may be entitled to an exit bonus even if the...more

Bressler, Amery & Ross, P.C.

Yes, an Arbitrator Can Exceed Their Powers in the Eleventh Circuit

The reports of the death of Section 10 of the FAA may have been greatly exaggerated. Thursday, a majority of the Eleventh Circuit held in Nalco Co. LLC v. Bonday that an arbitration award was subject to vacatur under Section...more

Holland & Knight LLP

Supreme Judicial Court Clarifies Scope of Massachusetts Noncompetition Agreement Act

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The Massachusetts Supreme Judicial Court (SJC) has ruled that a forfeiture clause triggered by a breach of a non-solicitation agreement is not a "forfeiture for competition agreement" under the Massachusetts Noncompetition...more

BCLP

Abolition of MPF Offsetting Mechanism in Hong Kong

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From 1 May 2025, in respect of Hong Kong’s MPF scheme, the MPF offsetting mechanism will be abolished, meaning that employers no longer will be able to use the accrued benefits of their mandatory contributions under the...more

Seyfarth Shaw LLP

Not Fooling Around: Critical New York State Legislative Updates for Employers as April Begins

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During the first quarter of 2025, the New York State legislature and Governor Kathy Hochul have been actively advancing several initiatives that – if passed and signed – will require New York employers to adapt their policies...more

Littler

10 Things Employers Should Know About Korean Labor Law

Littler on

Korea is an important economy in Asia with significant business opportunities. Multinational companies engage workers in Korea in all industries – from manufacturing to technology to finance. It is important to realize,...more

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