Restrictive covenants in employment agreements can be very useful to companies on the leading edge of technology and business innovation. This document is a general checklist of factors employers should consider with respect to the use of such covenants.
Maryland Employee Restrictive Covenants
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US-TC0916
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How to fill out Employee Restrictive Covenants?
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FAQ
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.
An affirmative covenant obligates a person to act. For example, a covenant that requires the homeowner to keep the trees trimmed in the yard is an affirmative covenant.
Maryland Fair Employment Practices Act: A state law that prohibits employers from discriminating against employees with regard to race, color, religion, sex, age, national origin, marital status, sexual orientation, gender identity, genetic information, or disability (this is broader than the federal Civil Rights Act)
For example, restrictive covenants can prevent owners and tenants from making certain renovations, having pets, parking RVs in the driveway, or raising livestock.
For example, restrictive covenants can prevent owners and tenants from making certain renovations, having pets, parking RVs in the driveway, or raising livestock.
Primary tabs A restrictive covenant is a provision in a real property conveyance that limits the grantee's use of the property. ... However, courts will not blindly uphold all restrictive covenants and may not enforce them if it would infringe on civil liberties or if the party seeking enforcement lacks standing.
Are discriminatory restrictive covenants illegal? Generally, yes. Since the United States Supreme Court's 1948 decision in the case Shelley v. Kraemer, restrictive covenants based on race have been unenforceableA contract will not be enforced by a court of law..
Restrictive covenants may contain 4 different types of promises: (1) a promise not to compete with one's former employer; (2) a promise not to solicit or accept business from customers of the former employer; (3) a promise not to recruit or hire away employees of the former employer; and (4) the promise not to use or ...
