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So often we hear that noncompete agreements are not worth the paper they are written on. Whether that statement is true or not depends on what is written on the paper. Earlier this year, the United States District Court of Maryland unequivocally confirmed that employee noncompete agreements are enforceable in Maryland! TEK-systems, Inc. v. Jonathan Bolton, (February 4, 2010). In fact,

Earlier this Spring, the Maryland Court of Special Appeals ruled that a Maryland corporation whose charter has been revoked by the Maryland State Department of Assessments and Taxation (“SDAT”) is deemed a defunct entity and cannot file or maintain an action in the Maryland courts. In the case of Tri-County Unlimited, Inc. v. Kids First Swimming School, Inc. the Court held that the revival of the

Section 4A-301 of the Corporations and Associations Article provides that a member of a Limited Liability Company (LLC) is not “personally liable for the obligations of the LLC, whether arising in contract, tort or otherwise, solely by reason of being a member of the LLC.” In what may prove to be a landmark decision, the Maryland Court of Appeals has held that an individual member of an LLC that owns

Notice of a client’s or customer's bankruptcy filing can strike fear in the heart of the most experienced business person. Even after the initial shock has worn off, the same business person may be served with a frightening complaint in which the bankruptcy trustee is attempting to avoid a preferential transfer by the client, now a bankruptcy debtor. Luckily, the law of preferences, which allows

There are a number of important changes for both employers and individuals included in the new 2010 Health Care Act (as amended by the Health Care Reconciliation Act) that are effective immediately. These changes confer a real benefit on small businesses as well as individuals with young adult children. Individuals with children who have not yet reached the age of 27 have been extended health

The issue of whether an employer can reduce the rate of compensation to its employees who choose to work extended hours has been answered in the affirmative. In a case out of the 9th Circuit, the Court said that such actions were permissible by the employer as a strategy to control overtime expense so long as the overall compensation meets the wage requirements under the Fair Labor Standards Act

A client, who recently used an agreement that he found on the internet, called us for help. The agreement was used to hire a subcontractor for a $100,000 task to be performed over several months, yet payable at a daily rate of $1,500 per consultant. The agreement had a beginning and an end date. The subcontractor's work was far below standard and was not worth the daily rate. Our client wanted

Be careful of the thief who masquerades as your bookkeeper. The law is not as kind to employers as it once was. Recently, McMillan Metro, P.C. was called upon to represent two different employers for claims of employee theft, with one claim involving over $1M. What happens when someone inside your business forges your signature on a check to someone who does not exist – a fictitious payee –

All employees are subject to an array of implied common law duties arising from the unwritten contract requiring the employer to pay wages in exchange for the employee's performance. While the duty of loyalty provides protection for the employer as well as a powerful enforcement instrument, it is often overlooked and ignored. Too often employees today do not connect their responsibility to the employer

Under a new Maryland law that went into effect last month, contractors that rely upon minority-owned companies in bids for the award of state construction projects but which fail to use such companies will be subject to felony charges. The new law, which went into effect as of October 1, 2009, provides for a maximum sentence of five years in prison, a $20,000 fine, or both.

Given the effect of the economy, many companies find themselves struggling to make rent payments. Companies may want to consider discussing rent abatement, rent deferrals and/or other concessions with their Landlords. The types of relief that may be available to a Tenant will differ depending upon a number of circumstances and each Landlord may react differently to such requests depending upon the

Beginning October 1, 2009, it will be against the law in Maryland to write or send a text message while operating a motor vehicle in the travel portion of the roadway (House Bill 72 and Senate Bill 98). A violation of this law is a misdemeanor and subjects the violator to a $500 fine. To date, Maryland has not joined the many states that have also outlawed talking on a cell phone while driving without

With all of the turmoil in our economy, it would be easy to just hunker down and tighten the belt. There are, however, some real economic incentives to purchase certain machinery and equipment that will substantially boost your 2008 deductions.

The Securities Investor Protection Corporation (hereinafter "SIPC") insures investment accounts in the event of the failure of a brokerage firm that is covered by SIPC (the "covered brokerage firm"). Under SIPC, brokerage accounts in a covered brokerage firm are insured up to $500,000 per account. This may include $100,000 held in the account as cash. When a covered brokerage firm is closed due

The U.S. Treasury Department's Temporary Guarantee Program for Money Market Funds guarantees a $1.00 share price of participating money market fund, if those shares were held on close of business September 19, 2008. The guarantee is triggered if a participating fund liquidates its assets as a result of its net asset value falling below $.995 per share price.

The Emergency Economic Stabilization Act, signed into law on October 3, 2008, has raised the Federal Deposit Insurance Corporation insurance limits on bank accounts in FDIC insured banks to $250,000 per covered account. This increase is effective for the period October 3, 2008 through December 31, 2009.