Allowed above a pay floor

Non-compete law in Maryland

Maryland voids a noncompete or conflict-of-interest provision that restricts an employee from taking a new job or going into the same business when the employee earns no more than 150% of the State minimum wage ($22.50 an hour at the $15.00 State minimum), is a licensed health care professional in a direct patient care position earning $350,000 or less a year, or is a licensed veterinary practitioner or technician. For licensed direct-care health professionals earning more than $350,000 the restriction may last at most 1 year and 10 miles. Beginning October 1, 2026, the voiding rule also reaches employees of a licensed architect whose employer meets set size and relocation tests. Other employees are not covered by the statute.

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Employee non-competes
Only within the statute's conditions
Pay floor
$22.50 an hour in 2026, adjusted with the State minimum wage
How pay is measured
Md. Code, Lab. & Empl. 3-716(a)(1)(i)1: employee who 'earns equal to or less than 150% of the State minimum wage rate established under 3-413'. 3-413(c) sets the State minimum at $15.00 per hour beginning January 1, 2024, in the text read (snapshot 2025-10-07), so 150% = $22.50 per hour (about $46,800 a year at 2,080 hours; the statute states an hourly rate, not an annual figure). The threshold moves if 3-413 changes.
Duration
Only for licensed direct-care health care professionals earning more than $350,000: 1 year from the last day of employment, and 10 miles from the primary place of employment (3-716(b)(2)). No statutory cap for other employees above the wage threshold.
Notice
For licensed direct-care health care professionals above $350,000, on patient request the employer must notify the patient of the new location where the former employee will practice (3-716(b)(3)).

Exceptions and special rules

  • Section 3-716 'does not apply to an employment contract or similar document with respect to the taking or use of a client or patient list or other proprietary client-related or patient-related information' (3-716(a)(2) in the 2026-09-29 text; renumbered (a)(3) by HB 1016).
  • The statute applies 'whether or not the employer and employee entered into the contract in the State' (3-716(a)(1)(ii)).
  • No sale-of-business provision appears in 3-716; employees above the thresholds fall outside the statute entirely.
  • Licensed health care professional (Health Occupations Article) in a position providing direct patient care. Provisions void if total annual compensation is $350,000 or less; if above $350,000, limited to 1 year and 10 miles and patient-notice duty. Applies to contracts executed on or after July 1, 2025 (2024 Md. Laws ch. 378, sec. 3). (Md. Code, Lab. & Empl. 3-716(a)(1)(i)2, (b); 2024 Md. Laws ch. 378)
  • Licensed veterinary practitioner or veterinary technician (Agriculture Article Title 2, Subtitle 3). Provisions void regardless of pay; added by 2024 Md. Laws ch. 378, effective June 1, 2024 (the bill's retroactivity section was struck before enactment). (Md. Code, Lab. & Empl. 3-716(a)(1)(i)3 (2026-09-29 text); 2024 Md. Laws ch. 378)
  • Employee of a licensed architect (Bus. Occ. & Prof. Art. 3-101) whose employer, on the employee's first day, employs more than 30 employees, the majority of whom report to a primary work site in the State or work remotely from within the State, and who, on the 'enforcement date', no longer has the majority of its employees so located in the State or no longer has its principal place of business in the State. Provisions void. 'Enforcement date' is the earliest date the employer files suit, starts arbitration or other formal dispute resolution to enforce, or demands in writing compliance. Applies only to contracts executed on or after October 1, 2026. (2026 HB 1016 (enrolled), amending 3-716; sec. 2-3)

Non-solicitation clauses

Not addressed except that 3-716 does not apply to provisions about taking or using client/patient lists or other proprietary client- or patient-related information.

Contracts naming another state's law

Section 3-716(a)(1)(ii): applies whether or not the employer and employee entered into the contract in Maryland. The statute has no separate choice-of-law or forum clause.

Which agreements it covers

Wage-threshold rule: 2023 amendment effective Oct. 1, 2023 (SB 591 third-reader text). Health care professionals (a)(1)(i)2 and (b): contracts executed on/after 2025-07-01. Veterinary: effective 2024-06-01. Architects: contracts executed on/after 2026-10-01 (HB 1016 sec. 2, effective 2026-10-01). 2026-10-01 (architect provision); 2025-07-01 (health care provision); 2023-10-01 (wage threshold amendment)

Recent changes

  • 2026-10-01. 2026 HB 1016 (enrolled; reported as Ch. 301, approved 2026-04-28 by secondary sources, chapter number not read from a primary) amends 3-716 to void noncompetes for employees of licensed architects whose employers meet the size and relocation tests; sec. 3 effective October 1, 2026; applies to contracts executed on or after that date. The consolidated post-Oct-1 statute page was not seen. Source
  • 2025-07-01. Health care professional provisions (3-716(a)(1)(i)2 and (b)) apply to contracts executed on or after this date (2024 Md. Laws ch. 378, sec. 3). Source
  • 2024-06-01. 2024 Md. Laws ch. 378 (HB 1388, approved 2024-04-25) took effect: veterinary bar, direct-care health professional bar and cap, patient notice; also required a Maryland Health Care Commission study of private equity in health care. Source
  • 2023-10-01. SB 591 (2023) replaced the former wage test ($15/hour or $31,200/year) with 150% of the State minimum wage. Text read is the third-reader bill, effective Oct. 1, 2023; the current statute text shows the 150% test. Source

Primary sources

Checker

What the statute says for these facts

Four facts. The answer leads with what the statute does at that pay, then names any change already enacted, then quotes the details with their citations.

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Several statutes treat contractors differently.

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