Maryland Employment Non-competition Package
Description
How to fill out Employment Non-competition Package?
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FAQ
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.
Non-compete agreements are clauses in employment contracts that prevent workers from working for ?competitor? companies during or after their current employment. These contracts typically restrict workers through time, industry, and/or geography.
Enforceability. Covenants not to compete are disfavored in Maryland and are strictly construed against the employer. For a non-compete agreement to be enforceable, it must be necessary to protect the employer's legitimate business interests and cannot impose undue hardship on the employee.
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.
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 ...
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.
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.