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Maryland: New Employment Laws Update

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As indicated

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The Maryland legislature adjourned in April after enacting several employment-related laws, summarized below.

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Oregon: Employers Must Remind Employees of Non-Compete Agreements on Exit

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January 1, 2020

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HB 2992 makes noncompete agreements unenforceable unless the employer provides an employee with a signed copy of the agreement within 30 days after the employee’s date of termination. Presumably, “after the date of … termination” does not include the day on which termination takes place. Best practice would be to send a copy of the agreement with proof of receipt to the employee after termination, such as return receipt requested, certified mail, express mail with signature required, etc.

This requirement only applies to noncompete agreements entered into on or after January 1, 2020. Although generally a good practice, the requirement does not apply to noncompete agreements entered into before that time, or to other types of agreements like nonsolicitation agreements or garden leave clauses.

Action Items

  1. Update termination procedures to include sending a copy of executed noncompete agreements to terminated employees within the required timeline.
  2. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2019 ManagEase

Georgia: “Key Employee” Clarified Under Restrictive Covenants Act

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March 5, 2019

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The Georgia Restrictive Covenants Act (GRCA) prohibits noncompete agreements with employees unless they “customarily and regularly” solicit customers or make sales, or are a “key employee.” In Blair v. Pantera Enters., Inc., the Georgia Court of Appeals provided clarity on what a key employee is. There, an employee left to work for a competitor and a client followed because of its relationship with the employee. The employee did not solicit customers or make sales, and the employer attempted to enforce the noncompete on the basis of being a key employee.

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Massachusetts: Significant New Limitations on Noncompete Agreements

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October 1, 2018

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Governor Baker recently signed “An Act Relative to Economic Development in the Commonwealth” that significantly changes the way Massachusetts employers may use noncompete agreements. The following are key changes to be aware of.

CO, ID, UT: Recent Restrictive Covenants Updates in Colorado, Idaho, and Utah

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Certain Employers with Employees in CO, ID, UT

EFFECTIVE

Varies; See Below

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Colorado

On April 2, 2018, the Colorado governor signed SB 18-082, which amended state law related to physician noncompete agreements, allowing physicians to disclose their continuing practice and contact information to a patient with a rare disorder whom they have been providing treatment. This amendment is meant to avoid disruptions in treatment for patients with rare disorders. Review the recent bill here.