State Non-Compete Laws: State-specific regulations governing non-compete agreements, including variations in enforcement, restrictions on duration, geographic scope, and scope of restricted activities. Notable examples include California's prohibition and recent trends limiting non-competes for lower-wage workers.
ADEA Compliance: Age Discrimination in Employment Act requirements ensuring the agreement does not discriminate against employees based on age and includes proper protections for workers over 40.
OWBA Requirements: Older Workers Benefit Protection Act specifications for valid waivers, including mandatory consideration periods (21 days for individual agreements, 45 days for group layoffs) and 7-day revocation periods.
FLSA Considerations: Fair Labor Standards Act implications for wage and hour requirements in relation to severance payments and non-compete restrictions.
IRC Section 409A: Internal Revenue Code Section 409A requirements regarding deferred compensation and tax treatment of severance payments, including proper withholding requirements.
State Severance Laws: State-specific mandatory severance requirements, final payment timing rules, and unemployment compensation implications that may affect the agreement terms.
COBRA Compliance: Requirements for continued health benefits coverage under COBRA, including notification requirements and continuation terms.
Consideration Requirements: Legal requirements for adequate consideration for both the severance payment and non-compete provisions, including any state-specific rules on what constitutes sufficient consideration.
