Labor and Employment Defense Counsel for Employers

It depends. Enforceability usually turns on the language of the agreement, the employee’s role, the scope of the restriction, and what actually happened at departure. In many cases, the real issue is whether the restrictive covenant was drafted and positioned in a way a court will enforce.

Usually early. Delay can affect leverage, evidence, and the availability of injunctive relief. If a key employee is leaving, soliciting customers, recruiting employees, or moving to a competitor, early legal involvement can materially improve the company’s position.

The first step is to get clear on the pay practices at issue: classification, overtime calculations, timekeeping, compensation structure, and whether the alleged problem is isolated or systemic. Under the FLSA, overtime obligations generally attach after 40 hours in a workweek, and collective actions under 29 U.S.C. § 216(b) can quickly increase exposure. Early involvement of counsel is often critical to evaluate the claim, protect the record, and mitigate exposure.

For an employment injunction, the employer usually needs to show more than a contract breach in the abstract. The argument is usually that the threatened harm cannot be fully repaired with money alone because the dispute involves customer relationships, confidential information, employee raiding, or other damage that is hard to unwind (and hard to calculate) once it happens. That is why speed, evidence, and a well-drafted agreement matter so much when emergency relief is on the table.

Very fast by comparison to many courts. The Eastern District of Virginia is known for accelerated schedules, and emergency requests can move quickly when the facts justify immediate relief. The exact timing depends on many factors, but employers should assume the court expects immediate preparation, strict compliance with federal and local rules, and attention to EDVA procedures for ex parte filings and injunction-related security requirements.

Often yes. Virginia’s new SB 170 does not eliminate other legal protections for employers. The statute expressly says it does not limit nondisclosure agreements aimed at protecting trade secrets, proprietary information, or confidential information. Separate from a non-compete, the Virginia Uniform Trade Secrets Act still provides remedies when a former employee misappropriates protected information.

For agreements entered into, amended, or renewed on or after July 1, 2026, Virginia’s SB 170 adds a major limitation. If an employer terminates an employee without cause, a non-compete is generally unenforceable unless the employer provides severance benefits or other monetary payment. Just as important, that payment must be disclosed when the covenant is signed. In other words, the employer generally cannot wait until termination and improvise severance terms to rescue the restriction. Governor Abigail Spanberger approved SB 170 on April 13, 2026, and the new rule takes effect July 1, 2026.

The first question is usually whether the transaction is structured as an asset purchase or a stock purchase. But wage exposure can also turn on assumed liabilities, diligence findings, payroll practices, indemnities, and the specific claims at issue.

Buyers should treat unpaid wage claims as a serious diligence issue and not assume that deal structure alone eliminates the risk.