You’ve landed an exciting new job opportunity, only to realize that your previous employment contract included a non-compete clause. Now you’re asking yourself, What happens if you break a non-compete? Will your former employer take legal action? Could you lose your new job, or worse, face a lawsuit?
At Smithey Law Group LLC, we understand how intimidating these questions can be. As a firm focused exclusively on labor and employment matters in Maryland, we’re here to guide you through your rights, risks, and possible defenses.
You’re Stuck Between Career Growth and Legal Consequences
Many Maryland employees sign non-compete agreements without realizing the long-term implications. These contracts often prevent you from working in the same industry, region, or with competitors for a specific period of time after leaving your job.
Now that you’re ready to move on, you’re unsure whether the agreement is enforceable or if your former employer can really stop you from earning a living. The truth is that non-compete agreements can have real teeth under Maryland law, and breaking one may lead to serious consequences if not handled properly.
What Happens If You Break a Non-Compete?
It is important to understand the consequences of breaking a valid non-compete clause. Some of the most common include:
- Cease and desist letters demanding you quit your new job,
- Injunctions that legally bar you from working in the restricted role or region, and
- Lawsuits seeking monetary damages or lost profits.
In Maryland, courts evaluate these claims under what’s known as the “reasonableness test,” which considers whether the non-compete is:
- Narrowly tailored in scope, such as duration, geography, and restricted activities;
- Necessary to protect legitimate business interests; and
- Not unduly burdensome to the employee or against public policy.
If a court finds the agreement too broad or unfair, it may refuse to enforce it altogether or modify its terms to make them reasonable.
Know Your Rights and Options
Not all non-competes are enforceable in Maryland. A court may strike it down if your agreement is overly broad or prevents you from earning a livelihood.
The state generally disfavors non-compete agreements unless:
- You had access to confidential information or trade secrets,
- You held a high-level or specialized position, and
- Your employer can prove the restriction is narrowly tailored and reasonable.
For example, if your agreement bans you from working in your entire industry for two years, that may be challenged as overly restrictive.
You May Have Defenses
If you break a non-compete, remember—there are often legal arguments to challenge the agreement. These defenses can address whether the non-compete:
- Places unreasonable restrictions on time or geography,
- Lacks consideration (e.g., you weren’t given anything in return for signing), and
- Changes in employment that invalidate the contract (e.g., demotion or termination).
In 2019, Maryland also passed the Noncompete and Conflict of Interest Clauses Act, which bans non-compete agreements for employees earning equal to or less than $15/hour or $31,200/year. If you fall into this category, the agreement is automatically void.
How Smithey Law Group Can Help
At Smithey Law Group, we have extensive experience with our exclusive focus on employment law. Our attorneys have literally written the book on Maryland labor law, contributing to the Maryland Rules Commentary and the MSBA Maryland Employment Law Deskbook.
When you consult us, we will:
- Review your contract in detail,
- Advise you on your risks and legal exposure,
- Negotiate with your former employer if needed, and
- Defend you in court if litigation arises.
We also provide strategic advice if you’re considering a new job and want to avoid triggering a non-compete violation.
Navigating Negotiations: Don’t Assume the Agreement Is Set in Stone
Before you panic or walk away from a promising opportunity, remember this: you can often negotiate non-compete agreements, even after signing them. Many employers are willing to modify, limit, or waive parts of the agreement, especially if they know enforcement might be difficult or costly. With the help of an experienced employment attorney, you may be able to:
- Negotiate a release or limitation of the non-compete’s terms;
- Request a written clarification about what types of roles or companies are off-limits; and
- Propose a compromise, such as a shorter restricted period or working in a different geographic location.
These negotiations are delicate, and every word matters. That’s why it’s critical to have a legal advocate who understands the nuances of Maryland employment law and can help you protect your career and reputation.
Protect Your Career Before Problems Arise
Even if your former employer hasn’t taken legal action yet, it’s wise to act proactively. Consulting with an employment lawyer before you sign a new job offer, or even before you resign, can make all the difference. You deserve to pursue your career goals without fear of unexpected legal barriers. Smithey Law Group is here to help you get there.
Concerned About Breaking a Non-Compete? You Don’t Have to Face It Alone
Breaking a non-compete agreement can feel overwhelming, but you have options. Maryland law offers employees some protections, but only if you know how to assert them.
If you’re wondering what happens if you break a non-compete, now is the time to talk to a seasoned employment attorney. Let Smithey Law Group guide you through the process so you can make confident, informed decisions about your career.
Contact Smithey Law Group Today
Whether you’re considering a new job or facing threats from a former employer, don’t navigate this alone. Contact Smithey Law Group to schedule a confidential consultation and protect your professional future.
