Business Litigation

Non-compete agreements were, at one time, reserved for high-level executives or key sales personnel in a company. With globalization and the increasing reliance on technology to deliver services to clients, corporations have rapidly expanded their use of non-compete agreements to mid-level executives and a broad range of highly-skilled employees within the corporation. Globalization and the reliance on technology has required corporations to recruit highly-skilled employees to remain competitive in the marketplace. The increasing use of non-compete agreements by corporations and businesses small and large alike appears to be tied to minimizing the likelihood of these highly-skilled employees leaving the organization, as well as minimizing the risk that these employees might take trade secrets or sensitive client information with them either to start their own company or to give an edge to a competitor.

What Workers Should Know About Maryland Non-Compete Laws

While these non-compete agreements serve the interests of the corporation, they can wreak havoc for the unwary employee. Non-compete agreements can preclude an employee from working in their industry for a competitor or starting their own business for months or years after leaving their employer. In addition to the financial implications of being restricted from pursuing all employment opportunities in one’s industry, there are also emotional and psychological consequences that can result from having to “sit on the sideline” for a particular length of time during your career as a result of a non-compete agreement. Because of the serious consequences, it is absolutely essential that every employee presented with an employment agreement obtain competent legal representation from an experienced Maryland employment lawyer.

Non-compete agreements, at their core, are restraints on trade. Said more bluntly, non-compete agreements distort the employee “marketplace” and limit the ability of people to work, for a time, for an employer that may be offering them more money or more prestige than their current or former employer. This causes courts to heavily scrutinize these agreements. With that being said, make no mistake that a Maryland court will enforce a valid non-compete agreement that is reasonable and does not pose an undue hardship on the employee.

Unlike some jurisdictions, non-compete agreements in Maryland are not governed by a statute. Rather, Maryland courts, through a multitude of written opinions on the trial court and appellate levels, have set the boundaries for the permissible limits of non-compete agreements entered into between employees and employers. That’s where a non-compete attorney can help.

The threshold requirements for a valid non-compete agreement in Maryland are: Adequate Consideration, Duration and Geographic Restrictions, and Undue Hardship on Employee.

Maryland courts have made clear that their evaluation of whether a non-compete agreement is reasonable is guided by “if the restraint is confined within limits which are no wider as to area and duration than are reasonably necessary for the protection of the business of the employer and do not impose undue hardship on the employee or disregard the interests of the public.”

If you are interested in learning how Nowicki & Associates can help you, contact our office to arrange a consultation. Call us at 410-879-0026 or email Tyler J. Nowicki, Esq. directly at [email protected]. All consultations are free and we’ll take the time to answer each and every question.