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
In US ex rel. Badr v. Triple Canopy, Inc., the U.S. Court of Appeals for the Fourth Circuit, which includes Maryland, issued an important decision regarding the Federal False Claims Act (FCA). The FCA provides that any person who knowingly submits false claims for payment to the government may be liable for double the government’s damages, plus a penalty of between $5,500 to $11,000 per false claim.
This is an important case because it establishes the potential for FCA liability where government contractors submit invoices for payment to the United States while knowing they have not satisfied the core requirements of their contract.Read More
In Maryland, non-competes and non-solicitation provisions can be enforced. However, a Maryland court will not enforce every non-compete and/or non-solicitation agreement.Read More
Arbitration agreements are unfair and undermine employee rights, and because of that, employers embrace them. But a recent Maryland federal court has slowed down the rush in enforcing unreasonable, employer-mandated arbitration agreements.Read More