Using Non-Competes When Greater Employee Responsibility = Greater Protectable Interest

Many employers require new hires to sign non-compete agreements and we have advised previously about best practices for employers to refresh their non-compete terms on a regular basis. A recent decision by a Maryland federal court illustrates a terrific, practical application of one practice to tighten up restrictions on employees after their employment has begun. Though not applicable in all non-complete situations, the case is certainly helpful in the circumstance of a pre-employment non-compete and a second non-compete entered into later as part of an employee incentive compensation plan or some other development providing benefits to the employee.

In the case, the defendant's former employees held senior positions such as regional vice president, national account manager and director of strategic sales with a company subsidiary. The subsidiary was a national professional staffing company that focused on placing people with high tech and IT skills to government