Competition Noncompetition Within A Company In Maryland
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Enforceability of Non-Competition Agreements in Maryland If the agreement is too broad or vague, it is unlikely that a court will enforce the agreement. When a non-competition agreement is challenged, Courts in Maryland will generally enforce the agreement only: Against an employee providing unique services.
Non-compete agreements are considered civil contracts and violating them leads to civil penalties. If you break a non-compete agreement, your former employer may sue you for breach of contract.
Typically, a noncompete agreement prohibits you from working for a competitor until a set period has passed, but it may additionally ban you from completing the following actions: Starting your own company in the same industry. Contacting former customers.
In Maryland, a “noncompete . . . provision in an employment contract . . . that restricts the ability of the employee to enter into employment with a new employer or to become self-employed in the same or similar business or trade shall be null and void as against the public policy of the State.”
Typically, a noncompete agreement prohibits you from working for a competitor until a set period has passed, but it may additionally ban you from completing the following actions: Starting your own company in the same industry. Contacting former customers.
Maryland's non-compete law currently bans all non-competes for employees earning less than 150% of the State minimum wage.
Enforceability of Non-Competition Agreements in Maryland If the agreement is too broad or vague, it is unlikely that a court will enforce the agreement. When a non-competition agreement is challenged, Courts in Maryland will generally enforce the agreement only: Against an employee providing unique services.
(3) A noncompete or conflict of interest provision in an employment contract or a similar document or agreement that restricts the ability of an employee to enter into employment with a new employer or to become self–employed in the same or similar business or trade shall be null and void as being against the public ...
This means that all current noncompetes under Maryland law will now be unenforceable except for those for senior executives, and no new noncompetes whatsoever may be entered into after September 4, 2024.
If the non-compete agreement poses an undue hardship on the employee, Maryland courts may find it unenforceable. In conducting an undue hardship analysis, the court balances the legitimate business interests of the employer against the potential hardship the employee will experience.
