Attorney General Schwalb Secures More Than $117,000 from Companies Violating District Noncompete Ban

Settlements Require Equinox and AllCare to Stop Using Unlawful Noncompete Agreements and Pay Damages to Workers


Attorney General Brian L. Schwalb today announced that two companies—Equinox and Capital Healthcare, LLC (AllCare)—will pay in excess of $117,000 and reform their business practices to resolve allegations that they required employees to sign unlawful noncompete agreements. Equinox is a luxury fitness studio with three locations in the District, and AllCare provides primary and urgent healthcare at five clinics across DC. The District banned use of non-compete agreements in October 2022.

“Noncompete agreements harm District workers and businesses across industries by depressing wages, limiting job mobility, and disrupting free and fair competition, and for that reason, they are illegal in the District,” said Attorney General Schwalb. “Aggressive enforcement of the ban protects workers and ensures a level playing field for all businesses. I encourage District residents and business owners to report potential violations to my office.”

The Office of the Attorney General (OAG) enforces DC laws protecting workers’ rights, including laws that ensure fair wages, overtime pay, and sick and safe leave. In 2022, a new DC law went into effect making it illegal for employers to impose noncompete agreements on the majority of DC workers. Noncompete agreements are clauses in employment contracts that limit employees’ ability to work for competing businesses, or in some cases, start their own business. These agreements are harmful to workers because they limit worker mobility and depress worker wages. Noncompete clauses also make it harder to recruit qualified and experienced workers, which can be harmful to businesses. As of January 2025, employers may not impose noncompete agreements on workers who earn less than $158,363 and medical specialists who earn less than $263,939. Noncompete agreements for medical specialists earning above that threshold are limited to a maximum of two years, and agreements for other workers above the threshold are limited to one year.

OAG’s Settlement with Equinox

OAG’s investigation into Equinox uncovered that the company required 112 District employees to sign unlawful noncompete agreements. Equinox cooperated with OAG’s investigation and has agreed to implement changes to its policies and procedures to ensure compliance with District law.

Under the terms of an agreement with the District, Equinox will:

  • Pay $56,000 to impacted workers.
     
  • Pay $43,900 in penalties to the District.
     
  • Stop using noncompete agreements for current and future District employees and agree not to enforce any previous noncompete agreements.
     
  • Provide notice to all current and former impacted employees that the noncompete agreements are void and unenforceable and submit annual reports to OAG to verify their continued compliance with District law.

A copy of the settlement agreement is available here.

OAG’s Settlement with AllCare

OAG’s investigation into AllCare revealed that the company required 12 District employees to sign unlawful noncompete agreements and attempted to enforce an unlawful noncompete agreement against one former employee. AllCare cooperated with OAG’s investigation and has agreed to implement changes to its policies and procedures to ensure compliance with District law.

Under the terms of an agreement with the District, AllCare will:

  • Pay $12,000 to impacted workers.
     
  • Pay $6,000 in penalties to the District.
     
  • Stop using noncompete agreements that violate that District’s ban for current and future District employees.
     
  • Ensure that nondisclosure agreements do not infringe on employees’ right to discuss their pay at work, in accordance with the DC Wage Transparency Law.
     
  • Provide notice to all current and former impacted employees that the noncompete agreements are void and unenforceable and submit annual reports to OAG to verify their continued compliance with District law.

The settlement agreement with AllCare is available here.

The AllCare matter was handled by Assistant Attorneys General Bryce Kelety and Beth Feldstein; Investigator Kenithia Alston; Workers’ Rights and Antifraud Assistant Section Chief Dennis Corkery; and Workers’ Rights and Antifraud Section Chief Graham Lake. The Equinox matter was handled by Assistant Attorneys General Jude Nwaokobia and Morgan Sperry; Investigator Kenithia Alston; Workers’ Rights and Antifraud Assistant Section Chief Dennis Corkery; and Workers’ Rights and Antifraud Section Chief Graham Lake.
 

OAG’s Efforts to Protect Workers and Level the Playing Field for Businesses   

OAG’s Workers’ Rights and Antifraud Section is dedicated to fighting wage theft and protecting District workers. Since January 2023, OAG has secured more than $20 million for workers and the District. In total, since gaining wage theft enforcement authority, OAG has secured over $35 million by bringing investigations and lawsuits against employers who violate District law. OAG’s wage theft enforcement efforts have focused on industries with high populations of vulnerable workers, such as construction, restaurants and hospitality, healthcare, and the gig economy. 

If you believe you have been asked to sign or adhere to an illegal noncompete, please contact OAG by calling (202) 442-9828 or emailing workers@dc.gov or trabajadores@dc.gov.