Maryland Employee Agreement with Covenant not to Compete
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How to fill out Employee Agreement With Covenant Not To Compete?
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FAQ
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.
Enforceability of Non-Competition Agreements in Maryland In general, non-competition agreements will be strictly construed against employers. These agreements must be as narrowly drafted as possible to protect the vital interests of the employer.
California law bars covenants not to compete in nearly all circumstances.
Four states?California, Minnesota, North Dakota and Oklahoma?have banned noncompete agreements entirely, and many other states have enacted restrictions, such as setting a compensation threshold or requiring advance notice.
Effective October 1, 2023, Maryland has raised the salary threshold on its non-compete ban to 150% of the state's minimum wage, meaning $19.88 or less per hour (the current minimum wage of $13.25 * 150%), or $41,350 annually.
The general rule in Maryland, as in most jurisdictions, is that ?restrictive covenants in a contract of employment, by which an employee as a part of his agreement undertakes not to engage in a competing business or vocation with that of his employer on leaving the employment, will be sustained 'if the restraint is ...
HOW DOES THE ?BLUE-PENCIL LAW? AFFECT MY NON-COMPETE CONTRACT? Maryland follows the ?blue-pencil? doctrine, which means that the courts may ?blue-pencil? any problematic provisions of a non-compete agreement without rendering the entire instrument void.