Restrictive Covenants In Commercial Contracts In Maryland
Description
Form popularity
FAQ
(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 ...
(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 ...
A restrictive covenant, enshrined in commercial agreements, is a legally binding clause that restricts a party's actions for a specified period post-termination of the agreement. Central to their enforceability is the principle of reasonableness.
Non-competes, conflict of interest provisions and other agreements that restrict the ability of a protected employee to enter into employment with a new employer or to become self-employed in the same or similar business or trade are deemed null and void under the law.
So Maryland restrictive covenants or non-compete agreements may only be enforced on employees who provide unique services or to protect trade secrets, client lists, or customer solicitation.
Employees can challenge the validity of a non-compete agreement in court. You have the ability to go to court and to make a case that your employer's non-compete agreement is not enforceable.
In the United States, employers generally use four types of restrictive covenants: (1) covenants not to compete for a certain period of time following the employee's termination from employment (or following a business transaction such as a sale, merger, etc.); (2) covenants not to solicit customers or clients for a ...
