Washington, D.C. Metro Area Law Firm Assists With Non-Compete Agreements

Non-Compete Agreement Lawyers Protect Clients’ Rights

Non-compete agreements are common in today’s business world, and companies use them to protect their trade secrets and customer bases by restricting the post-employment work of a former employee. But these restrictions often conflict with basic public policy, which says that an individual is free to work and earn a living, and the public’s fundamental interest in free and open competition.

Enforceability of Non-Compete Agreements

The enforceability of non-compete agreements vary from state to state, but generally courts will enforce non-compete agreements only if:

• The employee has knowingly consented to give up his rights
• The restriction is necessary to protect the business interests of the company
• The terms of the restriction are fair

In order to be enforceable, a non-compete agreement must be in writing. It is also best if the non-compete is part of a lengthier agreement, such as a non-disclosure agreement, and the employee is asked to initial next to the non-compete provision.

Some states require that a non-compete agreement be signed at the beginning of the employment relationship and will only consider enforcing a non-compete agreement signed after the initial employment date if the signing was accompanied by a promotion, a pay increase, or another event that would constitute consideration for signing the agreement.

Important and Protectable Interests

Whether or not a company has an important and protectable business interest depends upon the facts of each situation. In Maryland, a non-compete agreement is only valid if the employer can prove that it is necessary to:

• Prevent the loss of routes, customer lists, or the solicitation of customers
• Prevent the loss of an employee who was hired to provide unique services
• Prevent the loss of trade secrets to a competitor

A non-compete agreement will not be enforced simply because the employer taught the employee certain skills or to prevent the employee from competing with the employer.

Contact a Washington, D.C. Non-Compete Agreement Law Firm Today

If you need legal advice regarding a non-compete agreement, contact the Whay Law Firm online or call (202) 448-9677 to schedule your initial consultation.