4 Common Causes of Non-Compete Agreement Violations

In a competitive business world, non-compete agreements are common to protect businesses from employees leaving and taking clients with them. Whenever an employee signs a non-compete, they are promising to not compete with their employer for a set amount of time within a certain geographic radius and industry. Unfortunately, sometimes employees make non-compete agreement violations that require legal intervention.

Is Your Non-Compete Agreement Enforceable?

Before you worry about potential non-compete agreement violations, you must ensure that your agreement is legally sound. If your non-compete agreement is overly restrictive, it might not hold up in court. The agreement can be enforced if a court determines that:

  • There was adequate consideration put into the contract
  • The agreement made sense when considered with the nature of the employment
  • It was limited in duration and geographic radius
  • It would not impose undue hardship on the employee
  • It is not in violation of public policy

In the state of Maryland, a non-compete could be enforced even if one of the above things is not true. That means that the court will instead strike out any unenforceable portions and focus only on what can be enforced.

4 Common Non-Compete Agreement Violations

  1. A former employee gave trade secrets from your business to a competitor, even if they are not working for the competitor in a full-time capacity
  2. A former employee was hired by a competitor within the geographic boundary and time period that you specified in your agreement
  3. A former employee solicited clients or customers from your business after leaving
  4. A former employee gave confidential information about your workplace to a competitor

Non-compete agreement violations are very serious because they could do catastrophic damage to your bottom line and the financial future of your business. Always consult with an experienced business attorney like Mobley & Brown, LLP when creating your non-compete agreement to ensure that it will be enforceable. A comprehensive agreement will protect you against financial damage in the aftermath of critical employees leaving now and in the future.

Contact Mobley & Brown, LLP for Help with Creating Non-Compete Agreements in Maryland

If you are searching for the right attorney in Maryland and unsure where to turn, contact Mobley and Brown, LLP today. Our experienced legal team will work with you to meet your needs. Call us now at (410) 385-0398.