We have all been through the process of new employment – you receive the offer, review the compensation and benefits package, and are ready to accept. Then, while reviewing the employment agreement, you come across this confusing word: “Non-Compete.” Although the name itself appears to define what this clause represents, it is actually a nuanced parameter that can define your future interactions, professional opportunities, and career prospects.

What is a Non-Compete Agreement?

Generally, when you enter into a non-compete, you are agreeing to (a) not work for a competitor, or (b) become a competitor. Some non-competes may apply restrictions to a particular location and/or time frame, such as “within twenty (20) miles of Bethesda, Maryland for two (2) years.” Companies often use non-compete provisions to protect their business interests and trade secrets. However, such agreements can come at the cost of employee mobility and wellbeing, as well as the industry and area economy.

Restrictions on Non-Compete Agreements in Maryland

The State of Maryland is one of the most employee-friendly states in the country; its limitations on non-compete agreements, which went into effect in 2019, buoyed that reputation. Maryland prohibits any employment contract provision that limits certain employees’ ability to work in a comparable field or trade; working for either a new employer or themselves. (Md. Code Ann., Lab. & Empl. § 3-716(b))

The enforceability of non-compete agreements depends on a showing of adequate consideration and that it protects a legitimate business interest. Maryland courts apply a three-part test evaluating the “reasonableness” of the provision: (1) the duration of the restriction must be reasonable; (2) the geographical scope must be reasonable and not broader than necessary to protect the employer’s interests; and (3) the scope of restricted activities must be tailored to only prevent competition where the employee could harm the employer.

Maryland’s Limitations on Non-Compete Agreements

While non-compete agreements are permitted by Maryland law, Maryland limits the enforcement of non-compete agreements based on an employee’s wage and occupation.

Limitations on Non-Compete Agreements Based on Wage

Maryland prohibits non-compete agreements for any employee who earns equal to or less than 150% of the state minimum wage rate. As of the publishing of this article, Maryland’s minimum wage is $15.00 per hour. Thus, for workers earning less than $22.50 per hour, non-compete agreements are invalid and unenforceable.

This wage-based restriction applies regardless of whether the employee entered into the agreement within the State of Maryland. If you are employed within Maryland, Maryland State employment laws—including restrictions on non-compete provisions—apply to you.

Limitations on Non-Compete Agreements Based on Profession

In April 2024, Maryland banned non-compete clauses for veterinarians and veterinary technicians. In June 2025, Maryland further banned non-compete agreements for many healthcare professionals (with some qualifications listed; see below). Maryland issued these bans so that Marylanders would be empowered to choose the healthcare professionals they wanted, and those healthcare professionals would not be restricted from providing care because of a change of employment. Otherwise, these professionals would be limited as to the locations where they can provide their services after they left an employer.

However, these bans are tiered:

Professionals Making $350,000 or Less

A non-compete provision is unenforceable for all healthcare professionals who:

• Provide direct patient care; and,
• Earn $350,000 per year or less.

Professionals Making More Than $350,000

A non-compete provision is permissible for healthcare professionals who:

• Provide direct patient care; and,
• Earn more than $350,000 per year;

But, only if the non-compete restriction:

• Lasts no longer than one (1) year in duration; and,
• Is limited to within ten (10) miles of the former position’s principal place of employment. This is geographic miles: as the crow flies, not as the car drives.

With these additional protections, it is important to note that Maryland’s legislation on banning non-compete agreement does not impact the validity of other clauses that an employer may include in its employment agreement, such as non-disclosure, confidentiality, or non-solicitation provisions. The State of Maryland and its courts recognize the importance of maintaining proprietary information and trade secrets to organizations.

Nonetheless, these provisions add an extra layer of protection for Marylanders who not only are presented with these types of clauses at the start of employment, but are also subjected to them upon separation: particularly those who work in the healthcare field.

Though Maryland adopted a fairly simplistic approach to the enforceability of non-compete provisions in Maryland, not all organizations adhere to the parameters. If that is the case for you, it is best to have the agreement reviewed by a legal professional to determine what, if any, prohibitions you can be held to and whether you have any legal recourse.

Where Did Non-Compete Clauses Come From?

Non-compete agreements are far from new. The earliest documented non-compete provision dates back to 1414 in an old English contract law case referred to as “Dyer’s Case.” The Plaintiff, John Dyer’s former master, had brought a suit against Dyer, his former apprentice, for allegedly violating an agreement in which Dyer agreed to not trade his goods within the same town for at least six (6) months. The case was ultimately dismissed, but not because Dyer’s defense was successful. There was simply no law at the time that permitted this type of restriction on trade.

Fast forward several centuries, and non-compete agreements were becoming more and more common. In the 1711 case Mitchel v. Reynolds, the English Court established the general framework for analyzing the enforceability of non-compete agreements. The earliest known enforceable agreement in the U.S. appeared in 1811. At first, these clauses sought to protect companies from unfair competition. The Industrial Revolution and globalization brought a surge in comparable organizations, all competing with one another. Over time, however, the clauses themselves became too broad and burdensome: ultimately paralyzing former employees from working for other companies within the same industry, location, or job scope.

Since then, lawmakers in many states have seen how companies imposing such restrictions on employees—even after their employment ceased—harmed their constituents. Oregon implemented the first of several significant changes to its non-compete laws in 2007. This included requiring both a minimum salary threshold and a notice to the employee prior to acceptance of the position. Shortly thereafter, many states reviewed their own laws, including Maryland.

A knowledgeable Maryland employment attorney can guide you through the unique difficulties each workplace conflict presents, and work with you to find a solution that benefits you. Tully Rinckey attorneys have a collective wealth of knowledge of employment law in the federal, state, and private sectors. Call 8885294543, or contact us online today for a consultation to learn more about your options—and rights—as an employee in Maryland.

Tully Rinckey Partner Stephanie Rapp-Tully has spent her entire career helping public and private sector employees overcome unlawful personnel actions. Ms. Rapp-Tully concentrates her practice on employment law, both in the private sector in Maryland and D.C. and the federal sector. She routinely represents employees before United States District Courts, Appeals Courts, the Equal Employment Opportunity Commission (EEOC), and Merit Systems Protection Board (MSPB).

Nora Ezzat Cozzillio, Esq. is a Senior Associate at Tully Rinckey, PLLC. She is a DMV native, first-generation Arab American, and graduate of the University of Maryland, College Park and The Catholic University of America Columbus School of Law. Ms. Ezzat Cozzillio joined Tully Rinckey in August 2022, and has dedicated her legal career to assisting others who face threats to their livelihoods or careers as a result of severe civil rights violations by their employers, mentors, or supervisors.