Pay-threshold ban
Maryland Non-Compete Law (2026): Void below the pay floor
Section 3-716 nullifies non-competes for three groups regardless of where the contract was signed: workers paid at or under 150% of the state minimum wage (about $46,800 in 2026), licensed direct-patient-care providers earning $350,000 or less, and veterinary practitioners and technicians. Higher-paid clinicians are not fully protected — they can be restricted, but only for a year and within ten miles. Protections for client and patient lists sit outside the ban and stay enforceable.
The rule
How Maryland treats non-compete agreements
The statute keys to the State minimum wage, so Montgomery and Howard County's higher local rates do not raise the threshold even though several 2026 firm alerts have quoted a $49,920 figure. And the health-care rule is not a clean ban: cross the $350,000 line and you keep a real, if small, non-compete.
If you are an employer
Run the wage test against the $15.00 state rate rather than a county rate, keep any above-$350,000 clinician covenant inside the one-year and ten-mile boundaries, and be ready to tell patients where a departing provider has gone.
If you are a worker
Earning under roughly $46,800, or working in direct patient care for $350,000 or less, means your Maryland non-compete is void by statute — though a clause protecting the employer's client or patient list can still hold.
| Classification | Wage-floor ban plus occupation-specific bans and caps |
|---|---|
| Pay threshold | 150% of the state minimum wage. With Maryland's rate holding at $15.00/hour through 2026, that is $22.50/hour, or roughly $46,800 annually at 2,080 hours. Separately, licensed health care providers delivering direct patient care are protected outright at $350,000 or less. |
| Maximum term | No cap for the general workforce — reasonableness controls. One hard exception: health care providers paid above $350,000 may be restricted for no more than one year and no farther than ten miles from their primary worksite. |
| Notice or consideration | None. Maryland imposes no advance-disclosure, waiting-period or garden-leave obligation; the statute works by voiding covenants outright rather than by regulating how they are presented. |
| Primary statute | Md. Code Ann., Lab. & Empl. § 3-716 |
Detail
What has changed, and what is still moving
Legislation 2024–2026
HB 1388 (2024, Ch. 378) did the heavy lifting: veterinary practitioners and technicians lost their non-competes on June 1, 2024, and licensed direct-patient-care providers earning $350,000 or less were freed on July 1, 2025, with a one-year/ten-mile cap imposed above that figure. The 2026 session added only HB 1016 (Ch. 301, effective Oct. 1, 2026), a narrow measure for licensed architects at employers that relocate out of state.
Bills to watch
No significant restrictive bills pending. HB 1515, which would have applied the relocation rule across the workforce, was withdrawn by its sponsor in March 2026, and HB 1016 passed only after being cut back to architects.
Leading cases
Ruhl v. F.A. Bartlett Tree Expert Co., 245 Md. 118 (1967) remains the touchstone for the reasonableness inquiry. Deutsche Post Global Mail, Ltd. v. Conrad, 116 F. App'x 435 (4th Cir. 2004) shows Maryland courts declining to rewrite a covenant that swept too broadly. For workers inside § 3-716, the statute displaces the common-law analysis altogether.
If you have one in hand
What can make a non-compete unenforceable in Maryland
- You earn below the threshold. 150% of the state minimum wage. With Maryland's rate holding at $15.00/hour through 2026, that is $22.50/hour, or roughly $46,800 annually at 2,080 hours. Separately, licensed health care providers delivering direct patient care are…
- The scope is wider than the interest behind it. A restriction that reaches beyond the customers, trade secrets or goodwill the employer can actually point to is the most common reason a covenant fails in Maryland.
Whether any of these applies turns on the wording of your own agreement, your role and the case law your court follows. This page maps the statutory landscape; it does not replace advice on a specific contract.
FAQ
Maryland non-compete questions
Are non-compete agreements enforceable in Maryland?
Section 3-716 nullifies non-competes for three groups regardless of where the contract was signed: workers paid at or under 150% of the state minimum wage (about $46,800 in 2026), licensed direct-patient-care providers earning $350,000 or less, and veterinary practitioners and technicians. Higher-paid clinicians are not fully protected — they can be restricted, but only for a year and within ten miles. Protections for client and patient lists sit outside the ban and stay enforceable.
How long can a non-compete last in Maryland?
No cap for the general workforce — reasonableness controls. One hard exception: health care providers paid above $350,000 may be restricted for no more than one year and no farther than ten miles from their primary worksite.
Is there a minimum salary for non-competes in Maryland?
150% of the state minimum wage. With Maryland's rate holding at $15.00/hour through 2026, that is $22.50/hour, or roughly $46,800 annually at 2,080 hours. Separately, licensed health care providers delivering direct patient care are protected outright at $350,000 or less.
What notice or consideration does Maryland require?
None. Maryland imposes no advance-disclosure, waiting-period or garden-leave obligation; the statute works by voiding covenants outright rather than by regulating how they are presented.
Sources
How this entry was checked
- Primary source. Md. Code Ann., Lab. & Empl. § 3-716 — the statutory text itself.
- Secondary sources consulted. Md. Code Ann., Lab. & Empl. § 3-716 (Maryland General Assembly), Justia, HB 1388 (2024 Ch. 378), HB 1016 (2026 Ch. 301), Fisher Phillips, Ogletree, Epstein Becker Green, Maryland Dept. of Labor.
Check it against a third party
None of these is ours. If a figure here matters to a decision, verify it:
- Federal Trade Commission — non-compete hub
- Economic Innovation Group — State Noncompete Law Tracker
- Fair Competition Law (Beck Reed Riden) — 50-state legislation tracker
- GAO-23-103785 — Noncompete Agreements (May 2023)
This page is general legal information published by Jurizmo and is not legal advice, does not create an attorney-client relationship, and may not reflect amendments enacted after the review date above. Consult a licensed attorney in the relevant state before acting on any agreement.