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ARTICLES - Employment
One of the biggest questions asked
today is "should I sign a non-compete"? This all depends on your
job responsibilities and the nature of the position you hold. A
non-compete is an agreement between you and your employer to
generally refrain from working or interfering with the employers
company should your employment be terminated. The terms of the
agreement are generally broad and in favor of the employer. All
agreements must be in writing. A written agreement may be
entered into with an employee, agent, independent contractor,
partner, joint venture, distributor, dealer, franchisee,
licensee of trademark or service mark, or the seller of all or
part of a business, corporation, partnership, or limited
liability company. Additionally, written agreements can be
used for the protection of trade secrets.
For example, if you are a scientist and a
company wants you to work with their development team on a new
and emerging product, a non-compete maybe appropriate. Even in
such event you must be careful not to sign an agreement that is
overly broad and restrictive or you may find yourself not
working for a considerable amount of time with no income.
If you are a lower level employee with modest
income you may not want to sign a non-compete or you maybe in
for hard times. Let us say you are a secretary and the agreement
forbids you to work as a secretary for two years. This would
substantially impair your income ability. Most agreements
provide that an employee can be terminated at any time, with or
without cause. After two weeks at a job they inform you that you
are terminated and because you signed a two year non-compete you
can not work as a secretary.
Of course a court of law may or may not uphold
the agreement. When seeking to enforce these covenants, the
employer must prove to the court that the agreement is
reasonably intended for the protection of a legitimate business
interest of the company. Examples are trade secrets, valuable
confidential business information, substantial relationships
with specific existing or prospective customers, customer
goodwill associated with an ongoing business, a specific
geographic location, or a specific marketing or trade area, and
extraordinary or specialized training.
Most non-compete agreements are written for the
benefit of the employer, not the employee. Do not sign an
agreement without first understanding what it says. Contact an
attorney if you need help. Do not rely on the employers
statement that if something were to happen to your job the
company would not enforce the agreement. Company policies change
regularly and if they would not enforce an agreement why would
you be signing the agreement in the first place.
Stuart H. Grozbean, Esq. 301 738-5700
A Maryland law
firm also serving the District of Columbia and the Nations.
Maryland
employment lawyers who understand employment law.
Call for a FREE consultation.
YOU SHOULD REMEMBER THE INFORMATION
THAT YOU READ HERE IS GENERAL IN NATURE AND NOT MEANT TO BE A
SUBSTITUTE FOR SPECIFIC LEGAL ADVICE FROM AN ATTORNEY.
ATLANTA-WASHINGTON-SAN FRANCISCO
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