February 27, 2020 / 10:13 PM / a month ago

Workers who violated noncompete must pay back bonuses - 4th Circuit

A divided U.S. appeals court on Thursday said former employees of a recruiting and staffing firm who formed a rival company must return incentive payments they received in exchange for agreeing not to compete with Allegis Group Inc for two-and-a-half years after they left.

The 4th U.S. Circuit Court of Appeals in a 2-1 decision said the agreement the four workers signed when they joined units of Allegis was optional, and unlike typical non-compete agreements that only benefit employers, it did not have to be reviewed for reasonableness under Maryland law.

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