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. A court will normally hold non-compete clauses to be unreasonable if they involve unusually long periods of time or if they cover a geographic region surrounding Silver Spring that is excessively large.
Limitations on non-compete clauses must also be restricted to cover only competitors who are related in a reasonable way to the employer's industry. Lastly, the covenant not to compete must have a valid business purpose which is behind the employer's motivation for requiring the agreement.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
Since covenants could restrict your rights, you may wish to hire a Silver Spring, Maryland lawyer to review any agreements. They will be able to negotiate further changes to the covenant, and can draft an entirely new one that is acceptable to all parties if needed. Employers can receive useful advice from an attorney should they decide to sue a worker for breaching a covenant, and employees who have signed such covenants can also benefit from a lawyer's counseling.
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