Maryland Non-Compete Agreement
Maryland voids non-competes below 150% of minimum wage and for many health workers; higher earners are bound only if reasonable. Attorney review available.
Introduction
A non-compete agreement is a promise not to join a competing business after a job ends, and Maryland ties enforceability to pay, voiding it for any worker earning 150 percent or less of the State minimum wage, about $22.50 an hour. In Maryland a non-compete is enforceable only for higher earners, and only within limits. Under Maryland Labor and Employment Section 3-716, a non-compete is null and void as against the public policy of the State when the employee earns 150 percent or less of the State minimum wage, when a licensed health care provider gives direct patient care and earns $350,000 or less in total annual compensation, and for any licensed veterinary practitioner or technician. With the State minimum wage at $15.00 per hour, 150 percent is about $22.50 per hour, roughly $46,800 a year, so confirm the current minimum wage because the threshold tracks it. For an employee outside those voided groups, a non-compete is enforceable only if it is reasonable: courts in Maryland generally require that it protect a legitimate business interest such as trade secrets, confidential information, or customer goodwill, that it be no broader than necessary in time and geography, and that it not impose undue hardship. For a health care provider earning more than $350,000, a non-compete may not exceed one year or ten miles. Section 3-716 still lets an employer protect a client or patient list and other proprietary information. This page explains Maryland's rule and offers a template scoped to what Maryland actually permits. It is a state-law overview, not a promise that any given clause will hold up.
Key Things to Know
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A non-compete is a worker's promise not to compete with the business after the job ends. Under Maryland Labor and Employment Section 3-716 it is void for anyone earning 150 percent or less of the State minimum wage, about $22.50 an hour.
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Maryland Labor and Employment Section 3-716 makes an employee non-compete null and void as against public policy for a worker earning 150 percent or less of the State minimum wage, for a direct-patient-care health provider earning $350,000 or less, and for a licensed veterinary practitioner or technician.
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The wage threshold tracks the minimum wage, not a fixed dollar figure. With Maryland's State minimum wage at $15.00 per hour, 150 percent is about $22.50 per hour, roughly $46,800 a year for full-time work. Confirm the current State minimum wage, and do not import another state's salary number.
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For an employee outside the voided groups there is no fixed statutory time or distance limit. Courts in Maryland generally enforce a non-compete only if it protects a legitimate business interest, is reasonable in duration and geography, does not impose undue hardship, and does not offend public policy.
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Maryland's non-compete statute imposes no advance-notice or waiting period before signing. Courts in Maryland generally treat the offer of employment, and in many cases continued at-will employment, as consideration, but the restraint is still tested for reasonableness.
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A health care provider earning more than $350,000 in direct patient care can be bound, but a non-compete may not exceed one year from the last day of employment or ten miles from the primary place of employment (Section 3-716(b)), and the employer must tell patients the provider's new location on request.
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Section 3-716(a)(2) preserves protection of a client or patient list and other proprietary information, so Maryland employers can protect confidential data through a confidentiality agreement and the Maryland Uniform Trade Secrets Act (Commercial Law Section 11-1201 et seq.) even where a broad non-compete would be void.
Key decisions before you file
Before you file a Non-Compete Agreement in Maryland, a few decisions shape the document: which option to choose and what each one means. The Non-Compete Agreement guide walks through them.
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Maryland Requirements for Non-Compete Agreement
In Maryland an employee non-compete is enforceable only for higher earners and only if it is reasonable. Labor and Employment Section 3-716 makes a non-compete null and void as against public policy for a worker earning 150 percent or less of the State minimum wage, for many direct-patient-care health providers, and for veterinary workers. An ordinary low-wage employee non-compete cannot be enforced in Maryland.
A non-compete is void for any employee earning 150 percent or less of the Maryland State minimum wage (Section 3-716). The statute pins a formula, not a fixed dollar figure: with the State minimum wage at $15.00 per hour, 150 percent is about $22.50 per hour, roughly $46,800 a year for full-time work. Confirm the current State minimum wage, and do not rely on any other state's salary number.
Section 3-716 voids a non-compete for a licensed health care provider who gives direct patient care and earns $350,000 or less in total annual compensation, and for any licensed veterinary practitioner or technician regardless of pay. If you employ clinicians or veterinary staff, treat a non-compete as unenforceable for these workers and rely on confidentiality protections instead.
For a licensed health care provider earning more than $350,000 in direct patient care, a non-compete is allowed but capped: it may not exceed one year from the last day of employment and may not cover an area exceeding ten miles from the primary place of employment (Section 3-716(b)). The employer must also give a patient the provider's new location on request. These limits apply to contracts entered on or after July 1, 2025.
For an employee outside the voided groups, Maryland sets no fixed statutory time or distance. Courts in Maryland generally enforce a non-compete only if it protects a legitimate business interest such as trade secrets, confidential information, or customer goodwill, is no broader than necessary in duration and geography, does not impose undue hardship, and does not offend public policy. A narrow, purpose-tied restriction is far more likely to hold up.
Maryland's non-compete statute imposes no advance-notice or waiting period before signing. Courts in Maryland generally treat the offer of employment as consideration, and in many cases continued at-will employment supports a non-compete signed after hiring, though the restraint is still tested for reasonableness. Because there is no statutory review window in Maryland, read any non-compete carefully before signing.
Courts in Maryland generally follow a blue-pencil approach: a judge may strike or narrow an overly broad or divisible part of a non-compete and enforce the remainder if what is left is reasonable, but Maryland courts traditionally will not rewrite the covenant or add terms to rescue an employer's overreach. Draft the restriction narrowly rather than counting on a court to fix it.
Where a non-compete is void or risky, Maryland employers protect confidential information through a confidentiality or non-disclosure agreement and the Maryland Uniform Trade Secrets Act (Commercial Law Section 11-1201 et seq.). Section 3-716(a)(2) preserves protection of a client or patient list and other proprietary information. The 2024 Federal Trade Commission non-compete rule was set aside before it took effect and is not binding; Maryland's own law governs here.
Frequently Asked Questions
Sometimes. Maryland Labor and Employment Section 3-716 makes an employee non-compete null and void for a worker earning 150 percent or less of the State minimum wage, for a direct-patient-care health provider earning $350,000 or less, and for a licensed veterinary practitioner or technician. For an employee outside those groups, a non-compete is enforceable only if it is reasonable, meaning it protects a legitimate business interest, is no broader than necessary in time and geography, and does not impose undue hardship. An ordinary low-wage employee non-compete is void in Maryland.
For most employees Maryland sets no fixed maximum. Courts in Maryland generally enforce a non-compete only for a period reasonably necessary to protect a legitimate business interest, so a shorter, tightly scoped restriction of several months to a year is far more likely to hold up than a long, broad one. There is one hard cap: for a licensed health care provider earning more than $350,000 in direct patient care, a non-compete may not exceed one year from the last day of employment under Section 3-716(b).
Maryland ties the ban to the minimum wage. Under Section 3-716, a non-compete is void for any employee earning 150 percent or less of the State minimum wage rate. With Maryland's State minimum wage at $15.00 per hour, that threshold is about $22.50 per hour, roughly $46,800 a year for full-time work. Because the figure moves with the minimum wage rather than a fixed dollar amount, confirm the current State minimum wage before relying on it, and do not use another state's salary number.
Largely, yes. Under Section 3-716, a non-compete is void for a licensed health care provider who gives direct patient care and earns $350,000 or less in total annual compensation, and it is void for any licensed veterinary practitioner or technician regardless of pay. For a health care provider earning more than $350,000, a non-compete is allowed but may not exceed one year from the last day of employment or ten miles from the primary place of employment, and the employer must give patients the provider's new location on request.
Maryland's non-compete statute does not require advance notice or a waiting period before signing, unlike some states. Courts in Maryland generally treat the initial offer of employment as consideration for a non-compete, and continued at-will employment can support one signed after hiring, though a court will still test the restraint for reasonableness. Because there is no statutory review window in Maryland, read any non-compete carefully before you sign it.
Not fully. Courts in Maryland generally follow a blue-pencil approach: a judge may strike or narrow an overly broad or divisible part of a non-compete and enforce what remains if the remainder is reasonable, but Maryland courts traditionally will not rewrite the covenant or add new terms to save an employer's overreach. That is why a narrowly drafted restriction, tied to a real business interest and a reasonable time and area, is far safer than a sweeping one in Maryland.
They use a confidentiality or non-disclosure agreement and the Maryland Uniform Trade Secrets Act, Commercial Law Section 11-1201 et seq., which lets a business protect and sue over misuse of trade secrets. Section 3-716(a)(2) also preserves protection of a client or patient list and other proprietary client-related information even where a broad non-compete would be void. This approach protects confidential data without restraining where a former employee can work in Maryland.
No. In 2024 the Federal Trade Commission issued a rule that would have banned most non-competes nationwide, but a federal court set it aside before it took effect, so it is not currently in force and its status has remained unsettled. Either way, Maryland's own statute, Labor and Employment Section 3-716, and Maryland common law govern non-competes here: void for low-wage, many health care, and veterinary workers, and enforceable for higher earners only if reasonable.