What Is A Covenant Not To Compete In Maryland?

In general, covenants not to compete involve an employee in the state of Maryland who agrees not to work for competitors of their employer when they leave the company. Such covenants are frequently called "non-compete" clauses". An employee who signs them either does so as a condition to employment or they may receive compensation for the agreement.

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When are Covenants not to Compete Unenforceable?

Whether or not a judge will conclude that the covenant is enforceable can be difficult to know beforehand. Although the interests of employers are important, courts in Maryland also give priority to an employee's freedom to choose the type of employment that they desire. As a result, courts usually uphold only those covenants that are consider to be reasonable according to the circumstances. A court will usually hold non-compete clauses to be unreasonable if they involve unusually long periods of time or if they cover a geographic region surrounding Bethesda that is excessively large.

Covenants must also be limited to restricting dealings with those competitors that are rationally related to the employer?s industry. Lastly, there must be a legitimate business interest which motivates the employer's mandating a covenant not to compete.

Do I Need an Attorney when Dealing with a Covenant not to Compete?

A Bethesda, Maryland lawyer can help you review the covenant before you sign any documents that might limit your rights. The lawyer can assist you in negotiating modifications or if needed, they can possibly draft a new agreement which will be acceptable to both parties. An attorney can also give valuable advice when it comes to suing employees for breaching covenants, or counseling employees who have signed one about whether they can accept a different job.

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Life in Bethesda

Bethesda is located in Montgomery County, Maryland.  It is northwest of Washington D.C.  The city was named after a local church--the Bethesda Meeting House.    It is known as one of Maryland's most affluent and highly educated communities.  In facts, Forbes Magazine listed it first in "America's Most Educated Small Towns." 

Two popular sites include The National Institute of Health and the National Naval Medical Center   Other attractions include Capital Crescent Trail, Burning Tree Club, and Bethesda Avenue.  

Large corporations that have a presence in Bethesda include American Capital, AREVA, Inc., Cambridge Information Group, Coventry Health Care, GetWellNetwork, HMSHost, Honest Tea, Host Hotels & Resorts, Iridium Satellite LLC, Lockheed Martin, Marriott International, Ritz Carlton, and the United States Enrichment Corporation.  Although not large, the legal industry does have a presence in Bethesda as well because the city is home to attorneys who practice in various fields of law.

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Gregory A. MONTGOMERY, MD

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