Why Are Noncompetition Agreements With Employees Uncommon

Finally, in addition to the questions of whether and how you can ask existing employees to sign non-compete obligations, you should consider the many other considerations of whether a non-compete obligation is enforceable. Employers often limit the competitiveness of their employees after the end of the employment relationship. The rationale for trade restrictions is that employers have a protectable interest in their dealings with customers and suppliers, the goodwill associated with their brand, as well as their confidential information and trade secrets. Maryland follows the “blue pencil doctrine” in its flexible approach to employers struggling to defend their non-compete agreements with former employees. Under this rule, a non-compete obligation may also be enforced if a court finds that part of it is countervailable. The court will simply delete the unenforceable provision as long as it is separable and does not need to be rewritten or supplemented. This scenario is not unusual. Non-compete obligations are part of most doctors` employment contracts, and doctors need to understand the effects of these clauses. This article attempts to shed light on the subject. The requirement for additional consideration is generally motivated by the fear that employers may otherwise insist that employees sign “retrospective” non-compete obligations shortly before their dismissal. Such a measure would seriously limit the possibilities for new employment without the employee having a compensatory benefit.

In addition, it is legitimate for an employer to try to prevent competition from a departing employee with unique skills or particular knowledge or skills. While it may sound semantic, a few words can change your future. Make sure that any contract that includes a non-compete clause is reviewed by a lawyer who is familiar with the laws of your state. If you`ve already signed a non-compete agreement and are considering your next career step, a lawyer can shed light on a seemingly impenetrable clause and advise you on practical and safe options. An orthopedic surgeon is offered a lucrative position in an adjacent community through successful group practice. He fears that his existing employment contract with a teaching hospital will prevent him from accepting the new job opportunity. .