Maryland Non-Compete Laws (2026): Are Non-Competes Enforceable?

Maryland bans non-competes for some workers and judges the rest for reasonableness. Under Md. Code, Labor and Employment 3-716, a non-compete is "null and void as being against the public policy of the State" for employees earning equal to or less than 150% of the State minimum wage, for many licensed health care workers earning $350,000 or less, for veterinary practitioners and technicians and, from October 1, 2026, for a narrow group of workers covered by a new provision on licensed architects. For everyone else, the reasonableness test from Becker v. Bailey, 268 Md. 93 (1973), applies.

For how other states treat these agreements, see our non-compete laws by state guide.

Information last verified on 2026-10-08. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers Maryland law on employee non-compete agreements under Md. Code, Labor and Employment 3-716 (as amended in 2024 and 2026) and Maryland appellate case law, with a short note on the federal FTC rule. It does not cover trade-secret claims (see Maryland trade secret laws), severance pay (see Maryland severance pay laws), or covenants made when a business is sold.

Are non-competes enforceable in Maryland?

It depends on who you are and when you signed. Maryland has three tiers:

Where a ban applies, the statute reaches "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."

The low-wage ban: 150% of the minimum wage

Section 3-716 covers "an employee who earns equal to or less than 150% of the State minimum wage rate established under § 3-413 of this title." The statute does not state a dollar figure. The cutoff follows the State minimum wage, so it changes whenever the rate in 3-413 changes.

To find where the line sits today, start from the current State rate on our Maryland minimum wage page and apply the 150% multiplier the statute uses, or ask a lawyer to confirm how it applies to your pay.

Health care workers: the $350,000 line

The 2024 amendments (2024 Md. Laws ch. 378, HB 1388, approved by the Governor on April 25, 2024) added rules for employees who must be licensed under the Health Occupations Article and who provide direct patient care.

• $350,000 or less in total annual compensation: a non-compete is void.
• More than $350,000: a non-compete is allowed, but it may restrict the worker for no more than 1 year from the last day of employment and no farther than 10 miles from the worker's primary place of employment.
• Patient notice: for a worker in the higher-paid group, the employer must, on a patient's request, tell the patient the new location where the former employee will practice.

These health care rules are not retroactive. Section 3 of chapter 378 says they "shall be construed to apply only to employment contracts or similar documents or agreements for employment executed on or after July 1, 2025." A health care agreement executed before that date is judged under the common-law reasonableness test below.

Veterinarians and veterinary technicians

Section 3-716 voids non-competes for licensed veterinary practitioners and veterinary technicians (those regulated under Title 2, Subtitle 3 of the Agriculture Article). Unlike the health care rule, the veterinary ban has no compensation cutoff.

Chapter 378, which added the veterinary ban, took effect June 1, 2024 (Section 4). Its Section 3, which limits provisions to agreements executed on or after July 1, 2025, names only 3-716(a)(1)(i)2 and (b), the health care provisions, and does not name the veterinary provision. The bill also contained a section that would have applied the Act retroactively to agreements entered into on or before its effective date; the chaptered law shows that section struck. If you are a veterinarian with an agreement signed before June 1, 2024, have a lawyer check it.

The 2026 architect amendment (HB 1016)

Chapter 301 of the 2026 Laws of Maryland (HB 1016), approved by the Governor on April 28, 2026, took effect October 1, 2026. It applies "only to employment contracts or similar documents or agreements for employment executed on or after the effective date of this Act."

It voids a non-compete for an employee of a licensed architect only when both conditions are met. The Department of Legislative Services fiscal note describes the covered worker as a licensed architect who is employed by such an employer.

The two conditions:

• Size and Maryland presence on day one: on the employee's first day, the employer employed more than 30 employees, a majority of whom reported to a primary work site in Maryland or worked remotely from Maryland; and
• Departure by the enforcement date: on the "enforcement date," the employer does not have a majority of its employees in Maryland or does not have its principal place of business in Maryland. The enforcement date is the earliest of a lawsuit or other judicial enforcement, arbitration or another formal dispute process, or a written demand to comply.

An earlier version would have covered all employees, but the Senate Finance Committee narrowed it to licensed architects. The House passed the bill 94-36, the Senate 40-0, and the House concurred in the Senate amendments 101-29 on April 11, 2026.

The reasonableness test for everyone else

Outside the statutory bans, Maryland courts apply the common-law test. In Becker v. Bailey, 268 Md. 93 (1973), the court held that a covenant ancillary to employment and supported by consideration is upheld only if it is no wider in area and duration than reasonably necessary to protect the employer's business, and does not impose undue hardship on the employee or disregard the public interest. The court said:

"restrictive covenants may be applied and enforced only against those employees who provide unique services, or to prevent the future misuse of trade secrets, routes or lists of clients, or solicitation of customers."

Applying that rule, the court declined to enforce a covenant against a former employee who had merely become an efficient competitor.

Consideration, notice and garden leave

Section 3-716 does not require advance notice, advice to consult a lawyer, or garden-leave pay, and we found no other Maryland statute that does. Consideration comes from the common law: Becker describes an enforceable covenant as one "supported by adequate consideration and is ancillary to the employment contract."

Fired or laid off versus quitting

No Maryland statute treats a fired or laid-off employee differently from one who resigns. The question goes into the court's weighing of reasonableness and undue hardship. In Becker, the employer had terminated the employee, and the court declined to enforce the covenant on the facts of that case.

What a court does with an overbroad non-compete

For non-competes outside the statutory bans, Maryland follows the blue pencil rule. In Fowler v. Printers II, Inc., 89 Md. App. 448, 598 A.2d 794 (1991), the court said that "'blue pencil' excision of offending contractual language without supplementation or rearrangement of any language is entirely in accord with Maryland law." A court may strike words but not rewrite the covenant.

A non-compete that falls within one of 3-716's bans is null and void; the statute provides no mechanism to save it by rewriting.

Choice of law

The statute reaches agreements "whether or not the employer and employee entered into the employment contract or similar document or agreement in the State." We found no Maryland statute expressly addressing forum-selection or choice-of-law clauses in non-competes.

Penalties and remedies

Section 3-716 contains no fine, damages or attorney's fee provision. The consequence of a prohibited non-compete is that it is void. We did not find a state agency that enforces the section, so disputes are resolved in court.

Client lists, non-solicits and NDAs

The statute carves out client and patient 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." So the bans do not reach provisions about taking or using client or patient lists.

Section 3-716 does not mention customer non-solicitation clauses, employee no-poach clauses or nondisclosure agreements. We did not find a Maryland decision on whether a customer non-solicit counts as a non-compete under the statute.

Non-competes and trade secrets

A non-compete restricts where you can work; trade-secret protection is a separate body of law that does not depend on one. See Maryland trade secret laws.

Recent and failed bills

• HB 1016 (2026), Chapter 301: signed into law April 28, 2026; effective October 1, 2026; applies to agreements executed on or after that date.
• HB 1515 (2026): a broader relocation bill covering all employees; withdrawn by its sponsor in the House. Not law.
• SB 658 (2025): last action a Senate Finance hearing set for February 19, 2025; it did not pass before the 2025 session ended. Not law.
• HB 1388 (2024), Chapter 378: approved April 25, 2024; added the health care and veterinary rules; the health care rules apply to agreements executed on or after July 1, 2025.

We could not search the General Assembly's bill index for 2027 prefiled bills, so we have not verified whether new non-compete bills are pending.

The FTC rule and Maryland non-competes

The FTC's nationwide non-compete rule never took effect. A federal court in Texas set it aside on August 20, 2024 (Ryan, LLC v. FTC, No. 3:24-CV-00986-E, N.D. Tex.), the FTC voted on September 5, 2025 to dismiss its appeals, and the FTC removed the rule from the Code of Federal Regulations on February 12, 2026. The FTC still acts case by case, for example approving a final order on June 22, 2026 that required a pest-control company to stop enforcing non-competes. Maryland law governs Maryland agreements; more detail is in FTC non-compete ban struck down and our non-compete laws by state guide.

If you have been asked to sign

Whether a Maryland non-compete holds up turns on your pay, your license, the date the agreement was executed, and how far its area and duration reach. A lawyer licensed in Maryland can review a specific agreement against 3-716 and Becker.

Related

• Non-compete laws by state
• Maryland minimum wage
• Maryland trade secret laws
• Maryland severance pay laws
• FTC non-compete ban struck down

Disclaimer: This article provides general legal information about Maryland non-compete law under Md. Code, Labor and Employment 3-716, not legal advice. The information was last verified on 2026-10-08. For advice about a specific agreement, contact a legal aid office or a lawyer licensed in Maryland.

Last updated: 2026-10-08.

Frequently Asked Questions

Are non-competes enforceable in Maryland?

Some are. Labor and Employment 3-716 voids non-competes for low-wage workers, many licensed health care workers, veterinary practitioners and technicians, and (narrowly, from October 1, 2026) workers covered by a provision on licensed architects whose employer leaves Maryland; other non-competes are enforced only if reasonable under Becker v. Bailey (1973).

What is the salary threshold for a non-compete in Maryland?

A non-compete is void for an employee who earns equal to or less than 150% of the State minimum wage rate established under Labor and Employment 3-413. The statute states no dollar amount, so the cutoff moves when the minimum wage changes.

Can Maryland doctors and nurses be bound by a non-compete?

For agreements executed on or after July 1, 2025, a non-compete is void for a licensed health care worker who provides direct patient care and earns $350,000 or less in total annual compensation. Above $350,000, a non-compete may last no more than 1 year and reach no more than 10 miles from the primary place of employment.

Does Maryland's health care non-compete law apply to older agreements?

No. Section 3 of 2024 Md. Laws ch. 378 says the health care provisions apply only to agreements for employment executed on or after July 1, 2025. Earlier health care agreements are judged under the common-law reasonableness test.

Are non-competes banned for veterinarians in Maryland?

Yes. Labor and Employment 3-716 voids non-competes for licensed veterinary practitioners and veterinary technicians, without a compensation cutoff. The 2024 law that added this rule took effect June 1, 2024, and its July 1, 2025 limit names only the health care provisions.

Is a Maryland non-compete enforceable if I am fired?

Maryland has no statute that treats fired employees differently. Under Becker v. Bailey a court weighs reasonableness and undue hardship; in that case the employer had terminated the employee and the court declined to enforce the covenant.

Can a Maryland court rewrite an overbroad non-compete?

Maryland courts may strike offending language under the blue pencil rule without adding to or rearranging the remaining words (Fowler v. Printers II, Inc., 89 Md. App. 448 (1991)). A non-compete covered by 3-716 is simply null and void.

Does Maryland's non-compete law apply if I signed the agreement in another state?

Section 3-716 says it applies whether or not the employer and employee entered into the agreement in Maryland.

Does the FTC non-compete ban apply in Maryland?

No. A federal court set the FTC rule aside on August 20, 2024, and the FTC removed it from the Code of Federal Regulations on February 12, 2026, so Maryland non-competes are governed by Labor and Employment 3-716 and Maryland case law.