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Restrictive Covenants

Nineteen State Attorneys General Urge Federal Trade Commission to Ban Non-Compete Agreements

The Attorneys General of nineteen states, including Maryland, have asked the FTC to ban non-compete agreements nationwide.  While each of their states has the power to ban non-competes, each wants to bypass the state legislatures and ban non-competes by federal agency rulemaking. The letter states: Non-compete clauses in employment contracts prevent employees of one business […]

Maryland’s New Workplace Laws, Including Significant Changes To Maryland’s Anti-Discrimination Law

As of October 1, 2019, there are a series of new laws and/or amendments to existing laws that impact Maryland’s workplaces and employers.  These include: Significant FEPA Amendments:  Maryland’s anti-discrimination law, the Fair Employment Practices Act (FEPA), now includes independent contractors within the definition of employee entitled to FEPA’s protections.  Further, while FEPA generally applies to […]

Virginia Court Enforces Narrowly Drawn Restrictive Covenants

Restrictive covenants  in employment agreements are often hotly contested, and can be difficult for employers to enforce. The Circuit Court of Fairfax County recently addressed the complexities of these agreements in ruling that a non-solicitation and non–disclosure agreement was enforceable, while a non-competition provision was not. Omnisec International Investigations, Inc., et. al. v. Slavica Stone, […]

Virginia Federal Court Enforces Non-Compete Agreement

As a general rule, Virginia courts are reluctant to enforce non-compete agreements because they are disfavored restraints on trade. However, when the agreements are narrowly tailored, restrictive covenants will be enforced. A recent decision from the United States District Court for the Eastern District of Virginia provides good guidance as to what type of agreement […]

Financial Firms Revisiting Approach to Restrictive Covenants

Many business owners utilize some forms of restrictive covenants when hiring employees.  Whether it is to protect trade secrets or customer lists, or to ensure that sensitive information remains confidential, employees routinely execute agreements barring them from competing with their former employer, soliciting their former employer’s clients, or taking certain information with them when they […]

Case Dismissed: Judge Rules Allied Fire Can’t Compete in Court

A case decided this week by a Maryland federal court highlights the importance of careful drafting when it comes to non-compete agreements. Allied Fire Protection, Inc. v. Huy Thai, No. 17-551 (D. Md. 10/2/17).  In this case, Allied Fire Protection sought to enforce such an agreement when defendant Thai, a high-level employee, left to join […]