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 often called "non-compete" clauses". Signing such an agreement can either be a condition for being employed, or the employee may receive additional compensation for doing so.

When are Covenants not to Compete Unenforceable?

Whether a given judge will enforce a non-compete agreement is difficult to discern in advance. Although the interests of employers are significant, courts in Maryland also give importance 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. Covenants not to compete that a court will categorize as unreasonable include agreements that last for a long duration or that restrict the employee to an unreasonable geographic area around Poolesville.

Non-compete clauses are also limited in that they may only apply to competitors who are rationally related to the industry of the employer. Finally, the employer must have a legitimate business interest behind its motivation for mandating a covenant not to compete.

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

Before you sign any documents that could restrict your rights, you may consider hiring a Poolesville, Maryland attorney who can review the covenant. The attorney can negotiate modifications to the contract if they are needed, and can draft a new clause which is acceptable to the parties involved. A lawyer can also render useful advice for employers who are contemplating suing an employee for breach of covenant, or they can counsel employees who have signed such an agreement.