In Maryland, non-compete agreements are enforceable if the agreements are reasonable. However, if the scope and/or duration are unreasonable or the non-compete agreement causes an undue hardship on the employee, the agreement may be unenforceable.
The U.S. District Court for the District of Maryland’s recent decision in Allied Fire Protection, Inc. v. Huy Thai offers an example of an unenforceable non-compete agreement.
There, the employer filed suit to enforce a non-compete agreement that prevented the employee from “engag[ing] in any way business of a similar nature” to the employer’s business, either directly or indirectly, for five years. In response, the employee filed a motion to dismiss the employer’s lawsuit, which the court granted.
The court granted the employee’s motion to dismiss and held that the non-compete agreement was not enforceable.Read More