Maryland employment contract template
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How Maryland employment contract Differ from Other States
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Maryland prohibits non-compete agreements for employees earning less than $15 per hour or $31,200 annually, unlike some states.
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Maryland employment law requires prompt payment of wages upon separation, with specific timelines not found in all states.
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Maryland enforces strict notice and record-keeping requirements for wage deductions, which may differ from other states’ practices.
Frequently Asked Questions (FAQ)
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Q: Is a written employment contract required in Maryland?
A: No, employment contracts can be verbal or written, but it is recommended to have a written agreement for clarity.
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Q: Are non-compete clauses enforceable in Maryland?
A: Non-compete clauses are only enforceable for employees earning over $15 per hour or $31,200 annually, with other limitations.
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Q: What must be included in a Maryland employment contract?
A: Key terms should include job duties, compensation, benefits, work hours, termination provisions, and any restrictive covenants.
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Maryland Employment Contract
This Employment Contract ("Agreement") is made and entered into as of [Date], by and between [Employer Legal Name], a [State] [Entity Type] with its principal place of business at [Employer Address] ("Employer"), and [Employee Legal Name], residing at [Employee Address] ("Employee").
1. Employment Relationship
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Option A: At-Will Employment
The Employee's employment with the Employer is "at-will," meaning that either the Employer or the Employee may terminate the employment relationship at any time, with or without cause or notice, subject to applicable law.
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Option B: Fixed-Term Employment
The Employee's employment with the Employer shall be for a fixed term commencing on [Start Date] and ending on [End Date]. This Agreement will automatically terminate on [End Date], unless earlier terminated as provided herein. Renewal of this Agreement for any subsequent term shall require a new written agreement executed by both parties.
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Option C: Probationary Period
The Employee's initial employment period will be a probationary period of [Number] months, commencing on [Start Date]. During this period, the Employer will evaluate the Employee's performance and suitability for the position. The Employer may terminate the employment at any time during the probationary period. Successful completion of the probationary period does not guarantee continued employment on an at-will basis unless otherwise specified.
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Effective Date: The Employee's employment shall commence on [Start Date].
2. Job Title, Duties, and Location
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Job Title: [Job Title]
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Job Description:
- The Employee shall perform the following duties: [Detailed Description of Job Duties].
- The Employee shall report to [Reporting Manager's Name and Title].
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Work Location:
- Primary Work Location: [Primary Work Location Address].
- Secondary Work Location (if applicable): [Secondary Work Location Address].
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Remote Work:
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Option A: Not Applicable
The Employee is required to work from the designated work location and remote work is not permitted.
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Option B: Remote Work Permitted
The Employee may perform their job duties remotely [Number] days per week, subject to Employer's policies and procedures.
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Option C: Hybrid Work
The Employee will work a hybrid schedule, working both remotely and from the office as required by the Employer. Specific schedules will be communicated by the Employee's supervisor.
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Employment Type:
- Option A: Full-Time
- Option B: Part-Time
- Option C: Temporary
- Option D: Seasonal
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FLSA Classification:
- Option A: Exempt
- Option B: Non-Exempt
3. Compensation and Benefits
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Compensation:
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Option A: Salary
The Employee shall receive a base salary of [Dollar Amount] per [Year/Month/Pay Period], payable [Frequency - e.g., bi-weekly].
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Option B: Hourly Wage
The Employee shall receive an hourly wage of [Dollar Amount], payable [Frequency - e.g., bi-weekly].
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Overtime:
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Option A: Overtime Eligible
As a non-exempt employee, the Employee is eligible for overtime pay at a rate of one and one-half (1.5) times their regular hourly rate for all hours worked in excess of forty (40) hours in a workweek, as required by the Fair Labor Standards Act (FLSA) and Maryland law.
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Option B: Overtime Ineligible
As an exempt employee, the Employee is not eligible for overtime pay.
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Bonuses/Commissions:
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Option A: Bonus Eligible
The Employee may be eligible for a discretionary bonus, the amount and criteria for which shall be determined by the Employer in its sole discretion.
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Option B: Commission Eligible
The Employee may be eligible to earn commission based on [Commission Structure Details].
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Payment Method:
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Option A: Direct Deposit
Wages shall be paid via direct deposit to the Employee’s designated bank account.
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Option B: Check
Wages shall be paid via check.
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Benefits:
- Health Insurance: [Yes/No]
- Dental Insurance: [Yes/No]
- Vision Insurance: [Yes/No]
- Life Insurance: [Yes/No]
- Disability Insurance: [Yes/No]
- Retirement Plan (e.g., 401(k)): [Yes/No]
- Paid Time Off (PTO): [Number] days per year, accruing according to company policy.
- Sick Leave: The Employee is entitled to paid sick and safe leave as required by the Maryland Healthy Working Families Act.
- Parental Leave: [Yes/No, specify if applicable]
- Other Fringe Benefits: [List any other benefits]
4. Working Hours, Attendance, and Conduct
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Working Hours: The Employee's regular working hours shall be [Number] hours per week, generally from [Start Time] to [End Time], [Days of the Week].
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Attendance: The Employee is expected to be punctual and maintain regular attendance in accordance with the Employer's attendance policy.
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Breaks and Meal Periods: The Employee is entitled to breaks and meal periods as required by Maryland law.
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Codes of Conduct: The Employee shall adhere to the Employer's codes of conduct, including policies regarding workplace behavior, dress code, and electronic device usage, as outlined in the Employee Handbook. A copy of the Employee Handbook is provided to the Employee separately.
5. Intellectual Property and Confidentiality
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Intellectual Property: All work product, inventions, and discoveries created or conceived by the Employee during their employment with the Employer shall be the sole and exclusive property of the Employer.
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Confidential Information: The Employee agrees to maintain the confidentiality of all proprietary and confidential information of the Employer, including but not limited to trade secrets, customer lists, financial data, and business plans.
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Trade Secret Clause: The Employee acknowledges that the Employer possesses certain trade secrets, as defined under the Maryland Uniform Trade Secrets Act, and agrees not to disclose or use such trade secrets except as authorized by the Employer.
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Non-Disclosure Agreement: The Employee agrees to execute a separate Non-Disclosure Agreement (NDA) protecting the Employer's confidential information. [Yes/No]
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Invention Assignment: The Employee agrees to assign all right, title, and interest in any inventions, discoveries, and improvements conceived or made by the Employee during the term of their employment to the Employer.
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Data Security: The Employee will comply with all of the Employer's policies and procedures regarding data security and protection of personal information.
6. Restrictive Covenants
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Non-Competition:
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Option A: Non-Competition Clause Included
The Employee agrees that during their employment and for a period of [Number] months following termination of employment, the Employee shall not, directly or indirectly, engage in any business activity that is competitive with the Employer's business within a [Number] mile radius of [Location]. This clause is subject to the limitations of Maryland law, including restrictions on non-compete agreements for low-wage workers.
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Option B: Non-Competition Clause Excluded
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Non-Solicitation:
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Option A: Non-Solicitation Clause Included
The Employee agrees that during their employment and for a period of [Number] months following termination of employment, the Employee shall not solicit, divert, or attempt to solicit or divert any customer, client, or employee of the Employer.
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Option B: Non-Solicitation Clause Excluded
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Non-Disparagement: The Employee agrees not to make any disparaging or defamatory statements about the Employer, its officers, directors, employees, or products/services, either during or after the term of employment.
7. Termination
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Resignation: The Employee shall provide the Employer with [Number] weeks' written notice of resignation.
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Termination for Cause: The Employer may terminate the Employee's employment for cause, including but not limited to:
- Misconduct
- Poor Performance
- Violation of Company Policy
- Dishonesty
- Insubordination
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Termination Without Cause: The Employer may terminate the Employee's employment without cause, subject to any applicable severance provisions.
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Severance:
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Option A: Severance Included
In the event of termination without cause, the Employee shall be entitled to severance pay equal to [Number] weeks of their base salary.
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Option B: Severance Excluded
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Last Paycheck: The Employee's final paycheck, including all accrued and unpaid wages, shall be paid in accordance with the Maryland Wage Payment and Collection Law.
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Return of Property: Upon termination of employment, the Employee shall immediately return all Employer property, including but not limited to computers, mobile devices, documents, and access cards.
8. Performance Evaluation and Advancement
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Performance Evaluations: The Employee's performance will be evaluated [Frequency - e.g., annually].
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Promotions/Transfers: Promotions, transfers, or changes in duties are at the Employer's discretion.
9. Compliance with Laws
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The Employee shall comply with all applicable federal and Maryland labor and employment laws, including but not limited to the Fair Labor Standards Act (FLSA), the Maryland Wage Payment and Collection Law, and the Maryland Healthy Working Families Act.
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Equal Employment Opportunity: The Employer is an equal opportunity employer and does not discriminate on the basis of race, color, religion, sex, age, disability, national origin, sexual orientation, gender identity, marital status, or any other protected class under federal or Maryland law.
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Anti-Harassment: The Employer maintains a strict policy prohibiting harassment of any kind. The Employee is expected to comply with this policy, which is outlined in the Employee Handbook.
10. Workplace Health and Safety
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The Employer is committed to providing a safe and healthy work environment in accordance with Maryland law.
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Workers' Compensation: The Employee is covered by the Employer's workers' compensation insurance policy, as required by Maryland law.
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Safety Training: The Employee will receive required safety training as mandated by Maryland law and the Employer's policies.
11. Dispute Resolution
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Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Maryland, without regard to its conflict of laws principles.
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Venue: Any legal action or proceeding arising out of or relating to this Agreement shall be brought exclusively in the state or federal courts located in [County Name] County, Maryland.
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Mediation: Prior to initiating any legal action, the parties agree to attempt to resolve any disputes arising under this Agreement through non-binding mediation.
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Arbitration:
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Option A: Arbitration Clause Included
Any dispute arising under or relating to this Agreement shall be resolved by binding arbitration in accordance with the rules of the American Arbitration Association. The arbitrator's decision shall be final and binding on both parties.
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Option B: Arbitration Clause Excluded
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Waiver of Jury Trial: [Select One: Included/Excluded] The parties knowingly, voluntarily and intentionally waive their right to a jury trial regarding any dispute arising from this agreement.
12. Miscellaneous
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Amendment: This Agreement may be amended only by a written instrument signed by both parties.
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Waiver: No waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom the waiver is sought to be enforced.
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Assignment: This Agreement may not be assigned by the Employee without the prior written consent of the Employer.
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Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
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Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.
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Notices: All notices required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally or sent by certified mail, return receipt requested, to the addresses set forth above.
- Employer Notice Address: [Employer Address]
- Employee Notice Address: [Employee Address]
13. Maryland Specific Provisions
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Compliance with Local Laws: [Select One: Included/Excluded] The parties agree to comply with all applicable local laws and ordinances in [Montgomery County/Prince George's County/Other County], Maryland, including but not limited to sick leave ordinances.
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Required Notices: The following state and federal notices are attached to this agreement:
- Maryland Wage Payment and Collection Law Notice: [Yes/No]
- Maryland Healthy Working Families Act Notice: [Yes/No]
- Federal Employee Rights Under the National Labor Relations Act Notice: [Yes/No]
- EEOC Know Your Rights Poster: [Yes/No]
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[Employer Legal Name]
By: [Employer Representative Name]
Title: [Employer Representative Title]
[Employee Legal Name]
Signature: ____________________________