Maryland non-compete law

Pay figure in the law

The ban covers employees earning equal to or less than 150% of the State minimum wage rate.

Separate rules for professions

health care workers, veterinarians

Statutes and official texts quoted

Md. Code, Lab. & Empl. § 3-716(a)(3); Md. Code, Lab. & Empl. § 3-716(a)(1)(i)(1); Md. Code, Lab. & Empl. § 3-716(a)(1)(i)(2); Md. Code, Lab. & Empl. § 3-716(a)(1)(i)(3); Md. Code, Lab. & Empl. § 3-716(a)(1)(ii); Md. Code, Lab. & Empl. § 3-716(a)(2); Md. Code, Lab. & Empl. § 3-716(b)(2)

Is a non-compete allowed?

For covered employees, a noncompete or conflict-of-interest provision restricting work for a new employer or self-employment in the same or similar business is null and void.

“A noncompete or conflict of interest provision in an employment contract or a similar document or agreement that restricts the ability of an employee to enter into employment with a new employer or to become self–employed in the same or similar business or trade shall be null and void as being against the public policy of the State.”
Md. Code, Lab. & Empl. § 3-716(a)(3)

Pay thresholds

The ban covers employees earning equal to or less than 150% of the State minimum wage rate.

“an employee who earns equal to or less than 150% of the State minimum wage rate established under § 3–413 of this title;”
Md. Code, Lab. & Empl. § 3-716(a)(1)(i)(1)

Health care and other professions

The ban also covers licensed health-occupation employees providing direct patient care who earn $350,000 or less in total annual compensation.

“is required to be licensed under the Health Occupations Article; B. is employed in a position that provides direct patient care; and C. earns equal to or less than $350,000 in total annual compensation;”
Md. Code, Lab. & Empl. § 3-716(a)(1)(i)(2)

The ban also covers licensed veterinary practitioners and veterinary technicians.

“an employee licensed as a veterinary practitioner or veterinary technician under Title 2, Subtitle 3 of the Agriculture Article;”
Md. Code, Lab. & Empl. § 3-716(a)(1)(i)(3)

For licensed direct-patient-care employees earning over $350,000, a noncompete may not exceed 1 year after the last day of employment or 10 miles from the primary place of employment.

“The period for which a noncompete or conflict of interest provision in an employment contract or similar document or agreement is in effect may not exceed 1 year from the last day of employment.”
Md. Code, Lab. & Empl. § 3-716(b)(2)

Exceptions

The ban does not apply to provisions about taking or using a client or patient list or other proprietary client- or patient-related information.

“This subsection does not apply to an employment contract or a similar document or agreement with respect to the taking or use of a client or patient list or other proprietary client–related or patient–related information.”
Md. Code, Lab. & Empl. § 3-716(a)(2)

Which state’s law and court

The ban applies whether or not the contract was entered into in Maryland.

“whether or not the employer and employee entered into the employment contract or similar document or agreement in the State.”
Md. Code, Lab. & Empl. § 3-716(a)(1)(ii)

Federal rules

On September 5, 2025, the FTC moved to dismiss its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC and to accede to vacatur of the Non-Compete Clause Rule. FTC press release, Sept. 5, 2025

The FTC's final rule removes the Non-Compete Rule (16 CFR part 910) from the Code of Federal Regulations. 91 Fed. Reg. (Feb. 12, 2026), FR Doc. 2026-02866

Before you sign, or before you assume you are bound

1. Find every restrictive clause: non-compete, non-solicitation, no-hire and confidentiality are separate promises with separate rules.
2. Note how long each lasts and what area or customers it covers.
3. Check which state’s law the agreement picks and where disputes must be heard.
4. Compare your pay and your job with the Maryland rules above.

Check your state with the non-compete checker.

Common questions

Are non-competes enforceable in Maryland?

For covered employees, a noncompete or conflict-of-interest provision restricting work for a new employer or self-employment in the same or similar business is null and void. (Md. Code, Lab. & Empl. § 3-716(a)(3)).

Is there a salary threshold for non-competes in Maryland?

The ban covers employees earning equal to or less than 150% of the State minimum wage rate. (Md. Code, Lab. & Empl. § 3-716(a)(1)(i)(1)).

Does Maryland have special non-compete rules for health care workers or other professions?

The ban also covers licensed health-occupation employees providing direct patient care who earn $350,000 or less in total annual compensation. (Md. Code, Lab. & Empl. § 3-716(a)(1)(i)(2)).