The employee desires to be employed by the company in a capacity in which he/she may receive, contribute, or develop confidential and proprietary information. Such information is important to the future of the company and the company expects the employee to keep secret such proprietary and confidential information and not to compete with the company during his/her employment and for a reasonable period after employment.
Maryland Employee Confidentiality and Unfair Competition - Noncompetition - Agreement
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Multi-State
Control #:
US-00046
Format:
Word;
Rich Text
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By Janet A. In California, North Dakota, the District of Columbia, and Oklahoma, non-competes are either entirely or largely unenforceable as against public policy. Other states, including Maine, Maryland, New Hampshire, Rhode Island, and Washington, have banned non-compete agreements for low-wage workers.
Many Non-Competes are unenforceable because they restrict competition across too broad of a territory. Non-Competes usually describe a restricted area in which the employee cannot compete.
Maryland courts carefully review covenants not to compete, and generally enforce them only: 220e Against employees providing unique services. 220e To prevent misuse of the employer's: 220e established customer relationships; 220e trade secrets; 220e sales or delivery routes; or 220e customer or client lists.
The law became effective on October 1, 2019. In a typical non-compete agreement, an employee is prohibited from working for a competing employer after leaving the company. Valid non-compete clauses specify a length of time and/or distance the employee is prohibited from working for a competing company.
When employers obtain Non-Competes with long-standing employees without providing anything of value in return, they are obtaining an unenforceable agreement. In many cases, the business is in a worse predicament than not having a Non-Compete, since it is relying on an agreement that is not legally enforceable.
Confidentiality/non-disclosure agreements are contracts in which the employee promises not to disclose certain proprietary information, such as trade secrets. Non-compete agreements are contracts in which the employee agrees not to unfairly compete against his/her (former) employer.
Generally speaking, non-compete agreements (also sometimes called non-competition agreements, or simply non-competes) are not enforceable in California against former employees.
California - Non-compete clauses are not enforceable under California law. However, LegalNature's non-compete agreement may still be used to prohibit the employee from soliciting customers and other employees away from the employer.
Maryland courts have not specifically addressed whether non- competes with no geographic restrictions are enforceable (see Deutsche Post, at 757). However, the court in Gill upheld a non- compete that prohibited an employee from working for customers his former employer had in the year before he left (Gill, at 180).
It is possible to find non-compete loopholes in certain circumstances in order to void a non-compete contract. For instance, if you can prove that you never signed the contract, or if you can demonstrate that the contract is against the public interest, you may be able to void the agreement.
