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Hagerstown-Washington County News

ARTICLE

Date ArticleType
2/14/2013 General
Chamber Opposes Legislation to Weaken Non-Compete Agreements

Hagerstown, MD – The Hagerstown-Washington County Chamber of Commerce opposes Senate Bill 51, currently under consideration by the Maryland General Assembly, which releases those eligible for unemployment benefits from non-compete agreements with prior employers.  The Chamber opposes the legislation for the following reasons:

 

·       This bill is overreaching and will set a dangerous precedent.  It unnecessarily penalizes employers by nullifying non-competition agreements with former employees for no purpose.  Unemployment status should have no bearing on an employment contract which both the employer and employee enter into legally and voluntarily.

 

·       It will encourage employers to challenge unemployment appeals by laid-off workers when they otherwise might not. Suppose an employer discharges a sales employee for not meeting sales quota. If the employee files for unemployment, which would almost certainly occur, the employer would not necessarily feel compelled to challenge that determination. However with SB 51, if the employer is faced with an automatic trigger that would invalidate the non-compete, it has every incentive to mount a challenge to an employee's rights to receive unemployment benefits.

 

 

About the Hagerstown-Washington County Chamber of Commerce

Since 1919, the vision of the Chamber has been the preferred advocate and recognized voice of business in the greater Hagerstown-Washington County area.  We connect our member businesses to each other and to the community, organizing events and providing tools that they use to grow their business. We strive to be a go-to resource for the business community for questions, concerns, education and advice.  For more information, visit www.hagerstown.org.

Hagerstown-Washinton County Chamber of Commerce, Hagerstown, MD 21740
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