New York Passes Bill To Become Fifth State to Ban Non-Compete Agreements

Kollman & Saucier
Kollman & Saucier
06/23/2023
This week, the New York legislature passed NY State Senate Bill 3100A to modify New York’s Labor Law to effectively bar non-compete agreements.  The Bill’s effective date is 30 days after Governor Hochul’s signature, and will only apply prospectively to agreements signed, or effective, after the date the bill becomes law. The bill bars non-compete agreements in total, except in two circumstances: Non-disclosure agreements that protect trade...
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NLRB General Counsel Says Non-Competes Usually Violate The NLRA

Kollman & Saucier
Kollman & Saucier
05/31/2023
First confidentiality and non-disparagement provisions in severance agreements were declared unlawful, and now Jennifer Abruzzo, General Counsel for the National Labor Relations Board, has taken the same view of most non-compete agreements. On May 30, 2023, the General Counsel issued an advisory memo detailing her view that non-compete provisions in employment contracts “interfere with employees’ exercise of rights under Section 7 of the...
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Maryland Minimum Wage To Increase to $15/Hour On January 1, 2024

The legislature has updated the scheduled increases to the State’s minimum wage.  For small employers (those with fewer than 15 employees), the State minimum wage is $12.80 per hour as of January 1, 2023.  For employers with 15 or more employees, the State minimum wage is $13.25 per hour as of January 1, 2023. The minimum wage rate will increase to $15 per hour on January 1, 2024 for all employers, regardless of size. The legislature also...
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D.C. Scales Back Non-Compete Ban

Kollman & Saucier
Kollman & Saucier
08/03/2022
In 2021, the District of Columbia City Council enacted the Ban on Non-Compete Amendments Act of 2020.  The law was slated to prohibit the use and enforcement of non-compete agreements for nearly all employees working in D.C., with limited exceptions.  The law would also prohibit anti-moonlighting and other workplace policies that bar an employee from performing work for another employer, even if a direct competitor, or operating their own...
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Virginia Court Enforces Forum Selection Clause

Kollman & Saucier
Kollman & Saucier
06/01/2022
A federal court in Richmond, Virginia recently held that a Massachusetts employee who left the company and began soliciting former clients was required to defend her actions in a Virginia court, even though she never worked in Virginia. The Hill Group of New England, LLC, v. Susan LePage, No. 3:21cv757 (E.D. Va. 5/16/22).   The decision is a stark reminder that employees who sign restrictive covenant agreements as part of their employment need to...
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An Employer Cannot Sue its Competitor in Order to Retain Staff

Kollman & Saucier
Kollman & Saucier
01/26/2022
“The great resignation,” the current term used to describe the mobility of employees in the COVID-era  workforce, is in full effect.  Employment is extremely competitive at the moment, and it seems employees are feeling more comfortable changing employers.  This can, of course, leave employers in dire circumstances when a group of employees all decide to quit at the same time.  Employers are increasingly turning to alternative methods to...
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Nineteen State Attorneys General Urge Federal Trade Commission to Ban Non-Compete Agreements

Frank Kollman
Frank Kollman
11/26/2019
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 from leaving and working for or starting another. Using non-competes,...
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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 Maryland employers who have at least...
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Virginia Court Enforces Narrowly Drawn Restrictive Covenants

Kollman & Saucier
Kollman & Saucier
05/28/2019
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, et. al., CL 2018-6368 (March...
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Virginia Federal Court Enforces Non-Compete Agreement

Kollman & Saucier
Kollman & Saucier
06/14/2018
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 will be upheld. Update, Inc. v. Lawrence Samilow, Case No. 1;18-cv-00462-TSE-JFA ...
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