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Non-Compete Agreements. A non-compete agreement is a contract, generally between an employer and an employee, in which the employee promises not to compete with the employer for a specified length of time after the termination of employment.
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.
Finalized in May 2019 and effective the following October, the Maryland Non-Compete and Conflict of Interest Clauses Act prohibits using non-compete clauses for employees who earn $15 per hour or less or $31,200 annually.
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.
If the clause is enforceable and you're in breach, there are various sanctions that your ex-employer can seek. These include: An injunction: This would stop you from carrying out your new role and you may also face payment of the other party's legal costs.
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.
Generally speaking, non-compete agreements (also sometimes called non-competition agreements, or simply non-competes) are not enforceable in California against former employees.
You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.