Employment Fairness Act for Returning Citizens in Prince George’s County, MD
The Prince George's Employment Fairness Act for Returning Citizens is a new law in Prince George's County, Maryland, designed to provide fair...
With Verified Credentials' mobile-first candidate experience, you meet candidates where it's most convenient. Learn how easy we make it.
Ongoing monitoring of driving records can help employers avoid risk and improve driver safety. Learn about the benefits of adding Verified Credentials' newest solution to your screening strategy.
Learn the latest trends in employment background checks. This report uses real-life usage data to uncover how employers are screening across industries.
Verified Credentials is a leading background screening company. Since 1984, we’ve helped validate and secure relationships through the use of our comprehensive screening solutions. We offer a wide variety of background checks, verifications, and innovative screening tools.
Our accreditation confirms that our policies, processes, and employee training meet rigorous industry compliance standards.
Maryland and Virginia are two of the latest states to enact new employee protection laws that affect the use of employment agreements, such as non-compete, non-disclosure, and non-disparagement clauses. These laws aim to protect the rights and interests of employees, especially those who are victims of sexual harassment or who earn low wages.
Virginia is following the lead of other states with similar laws, such as New Jersey, New York, Washington, and California, as well as provisions under the federal Speak Out Act. The Speak Out Act prohibits the enforcement of non-disclosure and non-disparagement agreements related to allegations of sexual assault or sexual harassment that are entered “before the dispute arises.”
Employers are now prohibited from requiring employees to enter non-disclosure, confidentiality, or non-disparagement agreements that relate to claims of sexual harassment. HB 1895, which took effect on July 1, 2023, amends an existing Virginia law that already covers sexual assault. The law applies to prospective and current employer agreements that are entered into as a “condition of employment.” Additionally, the law does not indicate whether it is retroactive, meaning it may only apply to agreements entered on or after July 1, 2023.
It likely applies to non-disclosure, confidentiality, and non-disparagement agreements that employees enter into at the beginning of their employment and may not apply to a severance or other post-employment agreement. It is also unclear whether it applies to settlement agreements executed during an employee’s employment if the settlement agreement is a condition of continued employment.
Employers who violate the law may face civil penalties of up to $10,000 per violation.
Under existing Maryland law, employers cannot impose non-compete, conflict of interest, or similar agreements on employees unless they meet a certain wage or salary threshold. Maryland’s new state law, SB 591, raises the wage and salary thresholds.
The law, in effect as of October 1, 2023, raises the salary threshold to 150 percent of the state minimum wage, or a salary of $41,350 annually in 2023. On January 1, 2024, the state’s minimum wage will increase from $13.25 per hour to $15 per hour, increasing the salary threshold for the non-compete law to approximately $46,800 annually.
The law defines a non-compete agreement as an agreement restricting an employee’s ability to enter employment with a new employer or become self-employed in the same or similar business or trade. The law does not apply to agreements that protect confidential information, trade secrets, client lists, or customer relationships.
Employers who violate the law may be liable for actual damages and attorneys’ fees.
Although these laws apply directly to Maryland and Virginia employers, employees who have lived in these states and employers who hire remotely in these states may also be subject to these requirements.
More and more states are creating or updating employee protection laws. Laws similar to those in Maryland and Virginia could become a model for other states to follow, so employers may want to monitor the situation and consult their legal counsel to review their current job postings and hiring policies.
Verified Credentials is committed to keeping our clients and the background check community informed of these developments as they happen.
The Prince George's Employment Fairness Act for Returning Citizens is a new law in Prince George's County, Maryland, designed to provide fair...
As of July 1, 2024, Colorado’s Clean Slate Act, or Senate Bill 22-099, is officially in effect.This comes in the wake of several other states that...
The Texas Attorney General’s office has recently announcedthe formation of a dedicated task force within its Consumer Protection Division. This task...
If you’re an employer that uses background reports, compliance is a priority issue. Federal, state, and local consumer reporting laws are not the...
Technology could help simplify the hiring process, including adopting new technologies to manage your candidate pool, run video interviews, and...
It’s a nightmare scenario when there is a threat to an individual. Or worse, if someone takes another’s life. While tragedies related to an employee...