Non-compete agreements are often necessary if you operate a business in an industry where company processes, client lists and other trade secrets are vital. Many employers will ask their employees to sign a non-compete agreement before they start working. However, not every person will follow the rules that are outlined in a non-compete agreement. That is why it is important to enforce your legal rights against individuals who have breached these explicit terms. If a former employee breached the non-compete agreement they signed with your business, you should consult with an experienced Baltimore non-compete agreement lawsuit attorney.
The Heyman Law Firm understands the importance of safeguarding company secrets that are essential to your business. Our firm has a wealth of experience handling various types of business claims, and we will utilize that experience to represent you. To schedule a confidential legal consultation to discuss your claim, call the Heyman Law Firm at (443) 687-8803, or contact us online.
How Non-Compete Agreements Work
A non-compete agreement is a legal document typically used to prevent a former employee from competing against his or her former employer, whether by forming a new company or joining an existing competitor. Information that an employer may want to keep confidential includes:
- Client lists
- Special formulas
- Pricing and marketing strategy
- Employee salaries
- Business operations
- Intellectual property
- Future products
Non-compete agreements are also typically given to consultants and independent contractors that are working for a company. These contractors are more likely to work for several different similar companies over the course of their career, and it is much more difficult to enforce non-compete agreements when an employment relationship does not exist. It is, however, appropriate to prohibit a consultant or independent contractor from using trade secret information to solicit, for example, your current clients for which the consultant performed services.
It is important to note that non-compete agreements operate on a certain timeframe. This means that an employer will request an employee to refrain from working in a similar industry for a specific duration. The amount of time that you can bar an employee for working in a particular field will vary depending on the circumstances. That is why it is important to speak with an experienced attorney to help you draft an agreement that will be enforced by a court.
Additionally, non-compete agreements are often tied to a geographical area. For example, if your former employee signed an agreement to avoid working at a similar company within Baltimore, this may not prevent them for working for a similar company outside of Baltimore or outside of Maryland entirely.
To learn more about how non-compete agreements work in Maryland, continue reading and speak with an experienced Maryland non-compete agreement attorney.
Drafting a Valid Non-Compete Agreement
When you draft a non-compete agreement for your business, you must ensure that it does not contain terms that will prevent a court from enforcing it. For example, barring a former employee from furthering their career within the state of Maryland is too broad of an agreement to be enforced.
To draft an enforceable non-compete agreement, an employer should follow these guidelines:
- Limiting the geographic and durational restraints on the employee’s ability to look for a job and make a living as courts do not enforce overbroad provisions
- Making sure that you clearly identify your business’ protectible interest that is sufficient to prevent competition
- Describe the employee’s job duties for your company and those that he or she will be restricted from performing in the future. For example, if you employ a program manager, do not simply state in your agreement that competition with your company is not allowed. Instead, describe what he does and specifically state the job functions that cannot be performed in violation of the non-compete. The more specific, the more likely the agreement is to be enforced.
- Limit non-competes to those employees who you really want to protect. There is no need to, for example, have a busboy or waiter sign a noncompete.
It is important to note that Maryland abides by the “blue pencil doctrine.” This means that if a non-compete agreement has provisions that were not enforceable due to being overbroad, a court will have the power to revise them to make them enforceable under the law. It is better, however, to draft concise agreements that the court will enforce on their face.
There are various legal remedies that you can pursue if your non-compete agreement is breached by a former employee. These remedies are necessary because once trade secrets are spilled to your competitors, a former employee will be unable to undo that damage to your company. The legal remedies that you can receive if you prevail in your non-compete agreement lawsuit include:
- Temporary, preliminary and permanent injunctions (preventing an employee from disclosing other company practices)
- Damages or liquidated damages and attorneys’ fees if you included that provision in the contract
Our Baltimore Non-Compete Agreement Lawyers are Ready to Serve Your Business
If your business was the victim of a breach of its non-compete agreement by a former employee, you should contact an experienced Baltimore lawyer familiar with covenants not to compete. The Heyman Law Firm is dedicated to providing business owners with the unique legal representation that they deserve. To schedule a confidential legal consultation, call the Heyman Law Firm at (410) 305-9287.