Ex-Aerotek Employees Must Return Incentive Payments to Allegis

Allegis Group Inc. can claw back incentive payments made to four former highly paid employees of a subsidiary who formed a competing business in the months after leaving the company, the Fourth Circuit ruled Thursday.

Justin Jordan and three other high-level employees of Aerotek Inc. forfeited their benefits under Allegis’ voluntary incentive investment plan when they began operating a technology- and engineering-focused staffing company in the months after they left Aerotek, the Fourth Circuit concluded. This business activity violated their obligations under the plan, which included noncompetition and nonsolicitation clauses, the court said.

Jordan, who received more than $1.4 million ...