High-end fitness chain Equinox will pay almost $100,000 to settle allegations it violated the D.C.’s three-year-old ban on noncompete contracts.
New York-based Equinox has 300 clubs in cities across the U.S., including three in D.C.
D.C. passed a law in 2022 that bars companies doing business in the District from requiring most employees to sign noncompete agreements.
“Noncompete agreements harm District workers and businesses across industries by depressing wages, limiting job mobility and disrupting free and fair competition,” D.C. Attorney General Brian Schwalb said in a statement.
According to Schwalb’s investigation, Equinox required 112 District employees to sign noncompete agreements. Equinox cooperated with the investigation, and will pay $56,000 to impacted workers and $43,000 in penalties to D.C. It also agreed to stop using noncompete agreements for current and future employees, and will inform all employees noncompete agreements are not enforceable in the District.
A copy of the Equinox settlement is posted online.
Under the law, employers cannot impose noncompete agreements on most D.C. employees making less than $150,000. Those making more can be subject to only a one-year noncompete, and only if notified in advance. Medical specialists who earn over $250,000 can be subject to a two-year noncompete.
Schwalb’s office also announced a similar settlement with Capital Healthcare, LLC, doing business as AllCare, which operates five primary and urgent care health care facilities in D.C. Ellicott City, Maryland-based AllCare will pay $12,000 to 12 affected employees and $6,000 in penalties to the District. AllCare also cooperated with Schwalb’s investigation.
AllCare’s settlement agreement with the D.C. Office of the Attorney General is also online.
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