Maryland's Annotated Code states that non-compete agreements may only be used to protect legitimate business interests, which generally include trade secrets, routes, client lists, established customer relationships, goodwill, and unique services. Non-compete agreements may not cause undue hardship to the employee or be contrary to public policy. Additionally, as of October 1, 2020, low-wage employees, who make less than $15 per hour or less than $31,200 per year, may not sign a non-compete agreement.
Protect your Maryland business by also using a Maryland non-disclosure agreement form. Download a Maryland non-disclosure agreement form now!
To write a Maryland non-compete agreement, first review Maryland Annotated Code and the new law that will take effect on October 1, 2020. Include the following clauses:
The parties must sign and print their names. The signatures must be dated. The parties should receive a copy of the executed agreement for their records.