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 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
A recent Bloomberg BNA Daily Labor Report article, citing Lebau & Neuworth attorney Steven Lebau, states, “Whether they work on the management side or the worker side of labor and employment law, the attorneys contacted by Bloomberg BNA touted the advantages of boutiques (small law firms such as Lebau & Neuworth) for both lawyers and clients. They said the lawyers collaborate more and are able to offer high-quality and expert services at lower prices.”Read More
The Federal court in Maryland has provided a very encouraging roadmap for the law of noncompetes in the state. In fact, the court’s decision is great for an employee who may face an employer who attempts to prohibit him or her from working for another employer who may be a competitor — but the employee is not competing against the former employer.Read More