Old non compete agreement
I have a non compete as a sales rep with a company that operates under a new name because of a merger. I signed the agreement for a position I didn't hold when I left and they never had me sign another. I left to work for a manufacturer directly that competes against one of the manufacturer they sell. Since the positions are different, and I sell to the federal government through dealers, is my non compete valid?
1 answer | asked May 27, 2008 11:41 AM [EST] | applies to Maryland
Answers (1)
Non Compete Agreements Are Limited to their wording
It is not possible to decide if a non-compete agreement is invalid from a description of it. In Maryland, non-competition provisions are upheld if reasonable in duration and scope, if the business can show a business need for the provision (another reasonableness determination). Many sales non-competes limit the scope to a given universe of customers with whom the employer had dealings, others seek to prevent the person from working in a certain region in the same occupation. So you'd have to begin with the wording of the contract. Then you may want to assess the likelihood of a problem. Does the new company run to court to enforce these? Do you pose a competitive threat? Is the new company going to back you up? Sorry that a more definitive answer is not possible, but at least those are some things to think about.
posted by Mary T. Keating | May 27, 2008 12:11 PM [EST]
It is not possible to decide if a non-compete agreement is invalid from a description of it. In Maryland, non-competition provisions are upheld if reasonable in duration and scope, if the business can show a business need for the provision (another reasonableness determination). Many sales non-competes limit the scope to a given universe of customers with whom the employer had dealings, others seek to prevent the person from working in a certain region in the same occupation. So you'd have to begin with the wording of the contract. Then you may want to assess the likelihood of a problem. Does the new company run to court to enforce these? Do you pose a competitive threat? Is the new company going to back you up? Sorry that a more definitive answer is not possible, but at least those are some things to think about.
posted by Mary T. Keating | May 27, 2008 12:11 PM [EST]
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