Your employer just fired you. Not because you did anything wrong or because you quit. But because the company decided it no longer needed you. And now they’re telling you that you can’t work for a competitor—maybe not even in the same field. It feels unfair, and you’re not alone in wondering: Does a non-compete hold up if fired?
Not always. Maryland courts give non-compete clauses greater scrutiny when the separation wasn’t voluntary. If you were fired or laid off, the company has a higher bar to prove the restriction is reasonable. Factors like geographic scope, industry specificity, and duration all matter, but so does how and why you left the job. [not sure this last point is correct- in MD they apply whether employee was fired or quit]
One thing’s for sure: You don’t have to navigate this minefield alone. At Smithey Law Group LLC, we focus exclusively on labor and employment law. Our team has been nationally recognized, widely published, and repeatedly honored for our work in this area. We help clients challenge unfair non-compete agreements and reclaim their right to pursue employment opportunities. We’re here to clarify your options and protect your future when you need to know where your agreement stands.
How Does a Non-Compete Hold Up If You Are Fired?
Under Maryland law, non-compete agreements are enforceable only if narrowly tailored and protect a legitimate business interest. That interest might include safeguarding confidential information, customer relationships, or trade secrets. But the moment your employer ends your job, especially through no fault of your own, the scales begin to tip in your favor.
Courts in Maryland apply a reasonableness test when reviewing these clauses. Judges look closely at the following:
- Geographic reach. How large an area does the restriction cover?
- Timeframe. How long are you prohibited from working in your field?
- Industry scope. Does the restriction block you from unrelated work?
- Public interest. Will enforcing the agreement unfairly limit your ability to earn a living?
If your termination was involuntary, courts are more likely to question whether enforcing the non-compete agreement is just. After all, it’s hard to argue that someone is a threat to your business when you choose to sever ties with them.
Is a Non-Compete Void If Fired?
So, is a non-compete void if fired? Not automatically. But firing an employee weakens the agreement’s enforceability. Maryland judges won’t hesitate to strike down or narrow a clause that feels more like a punishment than a protection.
Key red flags that can render a non-compete void include:
- Overly broad language that attempts to block you from an entire industry,
- Restrictions that last longer than two years,
- Clauses that apply regardless of how your job ended, and
- Terms that violate Maryland’s public policy of free competition and mobility.
In 2023, Maryland reaffirmed its commitment to supporting worker rights. Under Maryland law, as of 2025, non-competes are entirely unenforceable for employees who earn less than $22.50 per hour or $46,800 annually. While that may not cover everyone, it illustrates the state’s commitment to limiting overly restrictive contracts. Ultimately, your former employer may be out of bounds if you’re not a threat to trade secrets or long-term business relationships, and your departure wasn’t your choice.
What Can I Do If a Former Employer Threatens Enforcement?
You don’t have to wait until your former employer hits you with a cease-and-desist letter. If your former employer threatens legal action over a job offer, take it seriously, but don’t panic. You have rights. Here’s what you should do next:
- Review the agreement thoroughly—note any time limits, industry restrictions, or vague terms;
- Document everything—including how your employer fired you, who initiated the termination, and what was said;
- Gather any supporting material—including employee handbooks, job descriptions, emails from management, and the offer letter from your new job; and
- Consult with a Maryland employment attorney—someone who knows case law, understands public policy, and can evaluate the specific terms in your agreement.
An attorney can help you determine whether your non-compete agreement is enforceable, and if not, how to challenge it without risking litigation. At Smithey Law Group LLC, our team understands how employers use these agreements to create fear and compliance. We approach every case with careful analysis and creative legal strategies tailored to the facts of your situation.
Does a Non-Compete Hold Up If Fired? The Bottom Line
In Maryland, while employers may attempt to intimidate former workers with boilerplate clauses, the reality is more nuanced. The bottom line is, it depends on:
- How the employment ended,
- The nature of your role and access to proprietary information,
- Whether the agreement protects a valid interest, and
- Whether the terms are more burdensome than necessary.
If even one of those factors is in your favor, you can fight back. And if several of these apply, the agreement may not be worth the paper it’s printed on.
Contact Smithey Law Group LLC Today
If you’ve been fired or laid off and a non-compete is standing in the way of your next chapter, let us help you write a new one. We’ll evaluate your agreement, explain your rights, and, when necessary, defend you against overreach.
At Smithey Law Group, we’re not just attorneys – we’re thought leaders in employment law. We have served on the Labor and Employment Section Council and the Board of Governors of the Maryland State Bar Association. We’ve appeared on MSNBC, the New York Times, and the Washington Post. We write the commentary that other lawyers rely on and are relentless about protecting your right to work.
Best Lawyers, Super Lawyers, Chambers USA, and numerous other prestigious organizations have honored our attorneys. But what matters most is our impact on the lives of employees like you, those who deserve the freedom to move forward, rebuild, and thrive. Your future shouldn’t rely on the job you just lost. Let us help you move forward.
