To Work or Not to Work – Maryland’s Senate Considers Changes To Non-Compete Law for Those on Unemployment

On January 9th, the Maryland Senate introduced a bill which if passed would invalidate employee “noncompetition covenants” for former workers who applied for and obtained unemployment benefits. Senate Bill 51 is sponsored by Senator Ronald N. Young, Democrat, who just began his third year in the Maryland Senate. If enacted, the bill will take effect on October 1, 2013, and would not affect any noncompetition covenant entered into before then.

Theoretically, the bill’s purpose is to eliminate obstacles for workers on unemployment to return to work, thus reining in benefit payments and, by extension, unemployment taxes on employers. So far, so good. But I have to ask:

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