MARYLAND’S JOB APPLICANT FAIRNESS ACT PRESENTS A POTENTIAL MINEFIELD FOR UNWARY EMPLOYERS In most states, employers can run a credit check on applicants for employment, subject to applicable federal law on background screening.  Recently, however, the State of Maryland enacted legislation barring this practice for most employers in Maryland.  The Maryland Job Applicant Fairness Act (“JAFA” or “Act”), enacted April 12, 2011, prohibits employers from utilizing a person’s credit reports or credit history in (1)

In recognizing the enforceability of non-competition and non-solicitation clauses, a federal court in Marylandhas barred an employee from working for a former employer’s direct competitor.  The case is General Parts Distribution v. St. Clair, 2011 U.S. Dist. LEXIS 145055 (2011). During his employment with General Parts, the employee signed non-competition and confidentiality agreements and a Covenant Not to Solicit/Not to Disclose.  These agreements prevented the employee from working for a competitor of General Parts within a

In a case highlighting the challenges to plaintiffs in showing individual discrimination in a reduction in force (RIF), a large company providing consulting services to the transportation industry prevailed over the age discrimination claims of a 57-year-old female employee that it terminated as part of a restructuring.  The employee, who worked as a high-level management consultant concerning trade to North Africa and the Middle East, claimed that the company discriminated against her in the reduction

Employers may ask what recourse they have when an employee violates a non-compete or steals confidential client information and passes it to another company.  As a recent Alexandria Federal Court decision demonstrates, employers have substantial and effective remedies.   Alliance Storage Technologies, Inc. v. Engstrom. Civil Action No. 4:11-cv-46 (E.D.V.A., May 3, 2012). In that case, Alliance Storage Technologies (Alliance) employed Bryan Engstrom as Worldwide Director of Sales for IT support and data storage for optical hardware. He

In a recent decision, the Federal Court of Appeals for the Fourth Circuit upheld a contract forcing a gas station owner to buy his gas from a certain oil company, despite the similarity of the agreement to an oft-unenforceable employment non-compete.  In so holding, the Fourth Circuit distinguished between business owner restrictive purchase agreements and employee restrictive covenants, finding the former easier to enforce than the latter.   The case is BP Products N.A., Inc. v.