Non-compete Clause
(MD)

Summary

This is an employee non-compete clause (also known as a non-competition clause or covenant not to compete) intended for use in an agreement that is subject to Maryland law. This template includes practical guidance, drafting notes, and alternate clauses. A traditional non-compete prohibits competing activities by an employee, typically for a specified period and often within a designated geographical area. Such covenants raise restraint-of-trade and other public policy concerns, and many states restrict their use by statute or common law. In Maryland, non-compete enforceability is generally a matter of common law, except for a statute prohibiting enforcement of non-competes against low-wage workers and veterinary professionals (Md. Code Ann., Lab. & Empl. § 3-716) and rules relating to attorney non-competes (Md. Lawyer's R. Prof'l Conduct 5.6). See the drafting notes for additional state law guidance and other matters. For a full listing of key content covering restrictive covenant considerations, see Restrictive Covenants Resource Kit. For additional boilerplate terms to consider when incorporating a non-compete into an agreement, see Non-compete, Customer and Employee Non-solicitation, and Confidentiality Agreement (MD). For additional information on Maryland laws concerning non-compete agreements, see Restrictive Covenants (MD). For information on non-compete agreements in Maryland and other states, see Non-competes and Trade Secret Protection State Practice Notes Chart and Non-competes and Trade Secret Protection State Expert Forms Chart. For information on non-competition agreements generally, see Non-compete Agreements: Key Negotiation, Drafting, and Legal Issues; Non-compete Agreements Checklist (Best Drafting Practices for Employers); Restrictive Covenant Basics, Including Adequate Consideration, Protectable Interests, Geographic and Time Restrictions, and Permissible Scope; Restrictive Covenants: Drafting Common Provisions; and Non-compete and Non-solicitation Agreements Checklist (Addressing Suspected Violations).