Maryland Employment Lawyer Handling Restrictive Covenants and Non-Competes
Also Serving Silver Spring, Glen Burnie, Columbia, Frederick, and Howard and Anne Arundel Counties
While employers often have legitimate interests to protect with non-competition, non-solicitation, and other restrictive covenants, the Maryland courts place limits on these contract provisions’ enforceability. Attorney Joyce E. Smithey brings more than 18 years’ experience to drafting, negotiating, enforcing, and disputing the enforceability of restrictive covenants under Maryland law.
Restrictive covenants are among the most heavily negotiated and heavily disputed provisions in employment contracts. While employers have business interests that they need to protect, employees also have legitimate concerns about preserving their ability to pursue job opportunities (or go into business for themselves) when they leave their current employment. These competing interests often put employers and high-level employees at odds, both during contract negotiations and after their relationships end.
While employers often have legitimate interests to protect with non-competition, non-solicitation, and other restrictive covenants, the Maryland courts limit their enforceability. Attorney Joyce E. Smithey brings over 25 years of experience in drafting, negotiating, enforcing, and disputing the enforceability of restrictive covenants under Maryland non-compete law.
What Are Restrictive Covenants?
Restrictive covenants are agreements limiting what an employee can do during or after employment. Employers commonly use these contracts to protect a company’s confidential information, client relationships, and competitive edge. However, they can also raise legal concerns, especially if they are too broad or unfair to the employee. Understanding your rights and obligations regarding restrictive covenants is essential for Maryland business owners and employees.
Common Types of Restrictive Covenants
Broadly speaking, in the employment context, a restrictive covenant is a contract provision that prevents an employee from taking certain actions that could harm the business interests of their or her employer. Restrictive covenants in employment contracts generally fall into four categories:
- Covenants that prohibit competition with the employer,
- Covenants that prohibit soliciting or providing services to any of the employer’s clients or customers,
- Covenants that prohibit soliciting or providing services to clients with whom the employee had contact during their employment, and
- Covenants that prohibit soliciting or hiring the employer’s employees.
Frequently, employers will use multiple restrictive covenants in combination in order to protect themselves against competition from their former employees as much as possible.
Requirements for Non-Compete Enforceability
Among the various types of restrictive covenants, covenants not to compete (or “non-competes”) tend to cause the greatest concern for both employers and employees. On the one hand, employers need to be able to invest in employees without concern that their investments will ultimately be used against them. On the other, employees need to maintain adequate flexibility to earn a living, should they decide to pursue alternative opportunities.
Recognizing these competing concerns, the Maryland courts have established a test for assessing the enforceability of non-competition covenants. While this test is obviously of concern for parties facing litigation, employers and employees seeking to negotiate non-competes must keep the test in mind, as well. In Maryland, for a non-compete to be enforceable, it must:
- Be designed to protect a legitimate business interest of the employer (such as preserving trade secrets or goodwill),;
- Be reasonable in geographic scope and duration,;
- Not be harmful to the general public,; and,
- Not be unreasonably burdensome to the employee.
As you can see, the test does not establish a clear rule for when non-competes will or will not be enforceable. Instead, it requires careful analysis of a number of factors that take into consideration the specific nature of the employment relationship, the employee’s background and position, and the level of protection required to serve the employer’s needs.
Additional Factors for Enforceability
Other factors that may weigh in the analysis for enforceability include:
- The value of the employer’s trade secrets, goodwill, and other intangible assets;
- The level of sensitive information to which the employee has access;
- The level of contact the employee has with clients and vendors;
- Whether the employee provides any “unique or extraordinary” services and the employee’s overall importance to the organization;
- The amount of time and geographic scope necessary to prevent harmful competition by the employee;
- The level of market competition and any danger of a monopoly due to competitive restrictions favoring the employer; and
- The opportunities (or lack thereof) available to the employee after termination of the relationship in light of the competitive restrictions imposed.
While the Maryland courts have the power to modify overly restrictive non-competes, it is generally not in either party’s best interests to rely on the courts to establish the scope of their competitive restrictions (although, depending upon the circumstances, this may be the only option). In most cases, both parties will benefit from negotiating reasonable terms that they can expect to hold up in court.
Working with an attorney familiar with Maryland non-compete law ensures your agreement meets legal standards and protects your interests—whether you’re trying to enforce it or defend against it.
Industry-Specific Concerns
Specific industries may face heightened scrutiny or different rules related to restrictive covenants. For example:
- Healthcare providers—may not enforce non-competes that limit access to patient care;
- Sales professionals—often receive non-solicitation clauses tied to client relationships;
- Technology companies—rely on confidentiality clauses to protect intellectual property; and
- Low-wage workers—receive protection under Maryland law, which bars non-competes for employees earning under a certain threshold.
Our team tailors legal strategies to your field. We understand the nuances of Maryland employment law and use that knowledge to your advantage.
Your Rights as an Employee in Maryland
If your employment contract includes a restrictive covenant, don’t assume it’s ironclad. You have options before and after signing your agreement.
You Can Take Action Before Signing
Don’t sign a restrictive covenant without understanding its consequences. Once you agree, you may limit your job prospects, business opportunities, and bargaining power. The Smithey Law team can negotiate fairer terms before you commit, helping you:
- Narrow the scope of a non-compete,
- Reduce the length of time it applies,
- Limit the geographic area covered,
- Clarify vague or overly broad language, and
- Seek compensation in exchange for restrictions.
The best time to challenge unfair terms is before you sign. However, if you’ve already signed, we can still help.
Your Options When Leaving a Job
If you’re preparing to resign, you must know how a restrictive covenant may affect your next move. You may wonder whether you can join a competitor, start your own business, reach out to former clients or colleagues, or face legal consequences for doing so. The answers depend on your specific agreement and the facts of your situation. Our attorneys evaluate your risks, identify your options, and help you develop a transition strategy that keeps you in control.
Steps you can take before you leave your job include:
- Understand what you signed. Review your employment agreement and identify restrictions like where you can work, who you can contact, and what information you can use.
- See if the restrictions apply. Many restrictive covenants don’t apply to every job change. We can help you assess whether your new position or business violates the terms or adjust your plans to minimize risk.
- Negotiate better terms. Employers often agree to revise or release restrictive covenants, especially if they don’t make business sense. We can negotiate changes that give you greater freedom without burning bridges.
- Respond to legal threats. If your employer threatens to enforce a non-compete, we act quickly. We respond to cease-and-desist letters, engage in negotiations, and stand up for you in court if necessary.
- Plan a smart exit. Together, we can plan a clean departure that avoids data misuse, protects your reputation, and documents your compliance so you can leave with peace of mind.
You can protect your future with the right legal guidance while making a confident and strategic career move.
Enforcing Restrictive Covenants as an Employer
As an employer, you invest in your employees. When they leave, you deserve protection against unfair competition. But to enforce a restrictive covenant, you must get it right from the start. Our attorneys can help you:
- Draft enforceable, narrowly tailored contracts;
- Customize agreements to your industry and workforce;
- Include strong choice-of-law and venue provisions;
- Use non-competes, non-solicits, and confidentiality clauses strategically;
- Conduct compliance audits to ensure your agreements align with current Maryland law; and
- Train managers and HR teams on how to implement and enforce these agreements.
Our restrictive covenant attorneys move fast when a former employee breaches your agreement. We pursue injunctive relief, restraining orders, and damages where appropriate. We also guide you through pre-litigation strategies that resolve disputes without escalating.
How Can a Maryland Non-Compete Lawyer Help?
A skilled lawyer brings clarity and strategy to restrictive covenant disputes. They assess risks, negotiate tailored solutions, and pursue resolution. Our team seeks to resolve disputes through negotiation, mediation, or arbitration when possible. If those methods fail, we are ready to litigate in court.
With the right legal partner, you can navigate complex restrictions and move forward with confidence and control. Smithey Law can be your partner in resolving restrictive covenant challenges. We offer trusted guidance and decisive action to help you move forward with confidence and peace of mind.
Evolving Legislation and Public Policy
The legal landscape surrounding restrictive covenants is changing rapidly. In recent years, many states have proposed or passed laws to limit the enforceability of non-compete clauses, particularly for low-wage or hourly workers. Maryland also limits the use of non-competes for various health care and veterinary professionals. This shift reflects a broader movement to prevent unfair restrictions on workers with little access to legal representation or bargaining power.
Federal attention has also intensified. In 2024, the Federal Trade Commission (FTC) proposed a rule banning non-competes nationwide. While the rule is still under review and facing challenges, it marks a significant shift in how non-competes are viewed in the context of worker rights and economic growth.
Staying up-to-date with state and federal developments is crucial for both employers and employees. Joyce Smithey, an experienced Maryland non-compete attorney, keeps her finger on the pulse of the ever-evolving employment laws. She can help ensure your agreement is legally compliant.
Speak with Maryland Employment Law Attorney Joyce E. Smithey
You don’t need to handle restrictive covenants on your own. Whether reviewing a job offer, planning a business exit, or dealing with a contract dispute, Smithey Law employment attorneys give you clarity and control.
We help employees protect their future and employers protect their investment. With years of experience in Maryland employment law, we deliver straightforward advice, responsive service, and proven results.
Joyce E. Smithey is a career employment law attorney who has more than 25 years’ experience representing employers and employees in Maryland. She has particular experience in contract negotiations and disputes involving restrictive covenants, and regularly represents clients in severance negotiations involving the enforcement of restrictive covenants as well. If you need experienced, insightful advice for a contract or severance negotiation, or if you need representation for a dispute involving a non-compete or other restrictive covenant, contact Ms. Smithey for a confidential consultation today.
To speak with attorney Joyce E. Smithey about your needs, please call (410) 919-2990 or request a consultation online. With offices in Annapolis, Ms. Smithey represents employers and employees throughout Maryland.