by Lisa WhiteAre Non-Compete Agreements Enforceable in Maryland?
People searching for a new job often discover that an offer of employment comes with a request – or requirement – to sign a non-compete agreement with the new employer. Sometimes these agreements are signed without the job seeker giving full consideration to the implications of signing.
To be enforceable in Maryland, a non-compete agreement must be reasonable in scope, geography, and duration. The agreement must protect a legitimate business interest of the company, and cannot cause undue hardship on the employee’s right to earn a living. Maryland law prohibits non-compete agreements for employees earning less than 150% of the state minimum wage, or when the non-compete agreement would prevent the employee from entering into employment with a new employer or becoming self-employed in the same or similar business or trade as a matter of public policy. Currently, 150% of the state minimum wage is $22.50 per hour ($46,800.00 per year).
For certain health care providers (those providing direct patient care and earning less than $350,000.00 annually), a non-compete agreement may have a duration of no longer than one year from the last day of employment. Such non-compete agreements may not contain a geographical restriction of more than ten miles from the primary place of employment.
Maryland courts evaluate whether a non-compete agreement is reasonable in scope, geography, and duration, and also determine whether the agreement protects a legitimate business interest of the company, imposes undue hardship, and whether the agreement harms the public. A reasonable non-compete agreement must be narrowly tailored to protect the employer’s business interest. It cannot pose an undue hardship on the former employee. Geographically, the limitation must not be any wider than necessary for the protection of the employer’s business.
How Should Your Business Tailor Its Non-Compete in Maryland?
First, an employer must determine the scope of its business and what it seeks to protect with the non-compete agreement. Next, an employer must determine its geographical scope within which it conducts business. Contacting a business attorney can assist an employer with drafting an enforceable agreement that can be tailored to specific employees to meet the legal requirements for enforceability.
What Employees Should Do Before Signing or Violating a Non-Compete?
When an employee is presented with any type of non-compete, whether as part of an initial hiring or during the course of employment, the employee should not assume it is enforceable – but it might be. The employee should read the entire document and consult with an attorney to learn about the risks to the employee should the employee choose to sign the document. These agreements can contain penalties for violation of the non-compete, including an injunction and payment of attorney’s fees to the employer should a breach of the agreement occur.
Lewicky, O’Connor, Hunt & Meiser stands ready to review proposed non-compete agreements, whether you are a business or an employee seeking advice. None of the information provided in this article constitutes legal advice. Every situation is different and should be thoroughly reviewed by and discussed with your legal advisors. Please do not rely on the contents of this article as a basis for making decisions regarding your particular situation. Please call us to schedule a consultation at (410) 489-1996.
by Samantha ChanHow Procedural Rules Preserve Your Options in Court
Many people think court cases are decided by dramatic testimony, persuasive arguments, or who is “right.” All of these things may be decisive in some cases, but in many cases, the path to a positive outcome has much to do with understanding and following court procedural rules.
One common frustration I hear from clients is that litigation doesn’t work the way they expect it to.
“Why do we have to file all these pleadings and motions if I already have the photos, evidence, and documents to show the judge I’m right?”
While pleadings, motions, and discovery may feel unnecessary to someone who doesn’t work in the legal system, procedural rules frequently control how a court is even permitted to decide a case.
An example I saw in practice recently illustrates the importance of filing a counterclaim in an appropriate case. A counterclaim is a claim asserted by the defendant against the plaintiff in the same case. Procedurally, it transforms the defendant from a purely reactive party into one with an independent claim for relief. That distinction matters more than most people realize.
A Real‑World Example from Family Law
Consider a divorce case:
The plaintiff files a complaint for absolute divorce. The defendant files an answer and a counterclaim for absolute divorce. Both pleadings allege essentially the same facts and request the same relief: that the parties be divorced. At first glance, the counterclaim may seem unnecessary. But timing and procedural posture can change quickly.
In one recent case, on the day of the hearing, the plaintiff decided she was not ready to proceed with the divorce. Had the defendant only filed an answer, without also filing a counterclaim, the court would have been left with no pending claim from a party ready to move forward. But because the defendant had filed a counterclaim, the court still had a live, ripe claim before it. The judge was able to proceed and grant the divorce based on the defendant’s counterclaim, even though the plaintiff no longer wished to go forward that day. That is the power of a counterclaim.
The Broader Lesson: Procedure Preserves Your Options
This principle is not unique to divorce or family law. Similar issues arise across civil litigation:
- Contract disputes: A defendant who agrees that money is owed but believes the plaintiff breached the contract first. Without a counterclaim, the court may only proceed with the plaintiff’s claims.
- Partnership/shareholder disputes: A business owner is removed from a company but fails to file a counterclaim alleging that the removal violated the company’s governing documents. By failing to assert that claim at the outset, the owner may lose the opportunity to challenge whether the required procedures were followed.
- Landlord‑tenant cases: A tenant agrees that rent has not been paid, but failing to file a counterclaim asserting habitability issues may prevent the court from considering those issues at all.
In each of these situations, the underlying facts may be straightforward, but the procedural posture could determine the outcome. If you are involved in litigation or responding to a lawsuit, understanding the procedural landscape may be critical. An experienced attorney’s role is not only to advocate on the merits, but to protect your ability to obtain relief by navigating those rules correctly.
