Maryland has enacted meaningful statutory protections against non-compete agreements for lower-earning employees. Under Maryland Labor and Employment Code section 3-716, non-competes are banned for employees earning at or below $15 per hour or $31,200 annually. Maryland also has specific restrictions for healthcare workers that limit the scope and enforceability of non-competes in that sector.
What is a Enforceability?
Under Maryland Code Labor and Employment section 3-716, an employer may not require a noncompete or conflict of interest clause from an employee whose annual salary or wages are $31,200 or less. Effective October 2022, additional healthcare worker protections apply: non-competes for healthcare workers who directly provide patient care may only restrict the specific type of work performed and cannot exceed a 1-year duration or 10-mile geographic radius from the worker's primary place of employment. For other employees above the wage threshold, Maryland applies a common law reasonableness standard.
Red flags to watch for
Maryland law explicitly voids non-competes for these employees. Any clause attempting to restrict a low-wage worker is unenforceable regardless of what the contract says.
Maryland's 2022 healthcare protections cap duration at 1 year and geographic scope at 10 miles from the primary workplace for workers who directly provide patient care.
Maryland law requires healthcare non-competes to be limited to the specific type of care the worker provides. A blanket ban on all healthcare employment in any capacity is unlawful.
For employees above the wage threshold in non-healthcare roles, Maryland courts apply common law reasonableness. Excessive duration, broad geography, or overbroad scope are the primary enforcement vulnerabilities.
Maryland courts require the employer to show a real protectable interest. Bare competitive protection without trade secrets, confidential customer relationships, or specialized training is insufficient.
Your legal rights
Under Maryland Code Labor and Employment section 3-716, a void non-compete is unenforceable as a matter of law. Employees can seek declaratory relief and raise invalidity as a defense if an employer attempts enforcement. For healthcare workers, the October 2022 protections provide clear statutory caps. For above-threshold employees in other sectors, common law applies.
Questions to ask before you sign
- 1Is my annual compensation above $31,200?
- 2Am I a healthcare worker who directly provides patient care?
- 3If I am a healthcare worker, does the restriction exceed 1 year or 10 miles from my primary workplace?
- 4Does the restriction limit only the specific type of care I provide, or all healthcare employment?
- 5What legitimate business interest is the employer protecting beyond general competitive concerns?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.