Two prominent employers operating in the District of Columbia — luxury fitness studio chain Equinox and healthcare provider Capital Healthcare, LLC (AllCare) — will pay more than $117,000 and overhaul their employment practices to resolve allegations that they violated the city’s ban on noncompete agreements.
Attorney General Brian L. Schwalb announced the settlements, which include financial penalties and restitution to affected workers. District law has prohibited noncompete clauses for most employees since 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,” Schwalb said. “Aggressive enforcement of the ban protects workers and ensures a level playing field for all businesses.”
Equinox, which operates three locations in the District, allegedly required 112 employees to sign unlawful noncompete agreements. The company has agreed to pay $56,000 in statutory damages to those workers and $43,900 in civil penalties to the District. As part of the agreement, Equinox must cease using noncompete clauses for current and future employees in D.C., notify impacted staff that existing agreements are void, and submit annual compliance reports through 2026.
The agreement also bars Equinox from enforcing any past noncompete clauses and requires the company to educate decision-making managers on the legal ban. A copy of the full settlement executed April 11, by Equinox’s Chief Legal Officer and the D.C. Attorney General’s office, confirms that Equinox neither admitted nor denied wrongdoing.
AllCare, which runs five clinics in the District, allegedly had 12 employees sign unlawful noncompete clauses and attempted to enforce one against a former worker. AllCare will pay $12,000 in restitution and $6,000 in penalties. The company also agreed to end all practices violating the District’s noncompete law, ensure that nondisclosure agreements do not restrict employees’ rights to discuss wages, and notify impacted staff that noncompete clauses are invalid.
The D.C. Office of the Attorney General (OAG) enforces laws that protect workers’ rights, including the District’s 2022 law banning noncompete agreements for most workers.
As of January 2025, noncompete agreements are forbidden for employees earning less than $158,363 annually and for medical specialists earning less than $263,939. Even for those above the threshold, any noncompete clause is time-limited — up to one year for most workers and two years for qualifying medical specialists.
Despite the noncompete complaints, both AllCare and Equinox have received strong reviews from Washington area residents.
“I go to AllCare,” one DMV social media user wrote on X, formerly known as Twitter, in April 2024. “It’s less individualized, [in my opinion], than a single doctor’s office, but it’s very reliable and the doctors are great.”
Further, one social media user said she tends to gather for impromptu meetings and networking in the sauna at Equinox.
Since gaining enforcement authority over wage theft, OAG has recovered more than $35 million in total from employers violating worker protection laws. More than $20 million has been secured since January 2023, with a focus on industries that employ large numbers of vulnerable workers, such as healthcare, construction, hospitality, and gig work.
“District residents and business owners should report potential violations,” Schwalb said. “Together, we can protect worker rights and ensure a fair market for all.”