Legal Question in Business Law in Maryland
Covenant Not to Compete
Is it legal for a company to give employees a covenant not to compete and say that if they do not sign it, they will be fired??
3 Answers from Attorneys
Re: Covenant Not to Compete
Yes.
Re: Covenant Not to Compete
Maryland is an employment at will state. This being said there are exceptions. Generally, a covenant not to compete can be made a condition of
employment. However, the covenant must be sufficiently tailored so that it is not too broad in coverage, over reaching in geographic area, and extensive of time duration.
(See my answer to another question providing more details here).
This all being said, the factual basis of your inquiry may bear upon your issue. You should contact an attorney.
Re: Covenant Not to Compete
Unless there is a reason they couldn't just fire you without cause (a contract with such a provision, for example), or a union contract, they can do this. If they can fire you without cause, they can decide to keep you only if you sign. But have the document reviewed by counsel first.
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