Are Non-Competes Enforceable in Maryland?
Last updated: 2026-10-07 · Verified against the statutes 2026-10-07
Pay threshold / worker limits
Void at or below $22.50/hr; health-care and vet limits
Maryland voids non-compete and conflict-of-interest clauses for employees earning equal to or less than 150% of the state minimum wage ($22.50 an hour, about $46,800 a year), for licensed veterinary practitioners and technicians, and for licensed health care workers providing direct patient care who earn $350,000 or less. Health care workers earning more can be bound for at most one year and 10 miles. Since October 1, 2026 licensed architects are also protected when their employer later moves its workforce or headquarters out of Maryland. Other covenants are judged for reasonableness, and courts may blue-pencil.
Check a non-compete
Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.
Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).
Allowed only with strict limits
Maryland allows this non-compete only if it meets the statute's conditions — check each item below.
- Maryland: Void at or below $22.50/hr; health-care and vet limits. Md. Code, Lab. & Empl. 3-716
- Enter annual earnings — Maryland voids non-competes below $46,800. Earnings equal to or less than 150% of the state minimum wage under 3-413 ($15.00/hr) = $22.50/hr, about $46,800 a year at 2,080 hours (the statute is an hourly test) Lab. & Empl. 3-716(a); 3-413
Other Maryland rules to check
- Non-solicitation clauses: The low-wage ban does not cover agreements about taking or using a client or patient list or other proprietary client- or patient-related information.
- Choice of law and venue: The ban applies whether or not the employment contract was entered into in Maryland.
- If a court finds it too broad: Courts may strike overbroad words (blue pencil) but won't rewrite.
General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.
Maryland non-compete rules
- Employee pay threshold
- $46,800 Earnings equal to or less than 150% of the state minimum wage under 3-413 ($15.00/hr) = $22.50/hr, about $46,800 a year at 2,080 hours (the statute is an hourly test)
- Non-solicitation
- The low-wage ban does not cover agreements about taking or using a client or patient list or other proprietary client- or patient-related information.
- Choice of law / venue
- The ban applies whether or not the employment contract was entered into in Maryland.
- Overbroad covenants
- Courts may strike overbroad words (blue pencil) but won't rewrite
Profession-specific rules
- VoidLicensed health care workers (Health Occupations Article) providing direct patient care and earning $350,000 or less: non-competes void. Those earning more: at most 1 year and 10 miles from the primary workplace, and patients must be told the new location on request. Applies to contracts executed on or after July 1, 2025. (effective July 1, 2025) 2024 Md. Laws ch. 378 (HB 1388)
- LimitedPhysicians are licensed under the Health Occupations Article, so the $350,000 rule above applies to them. (effective July 1, 2025) 2024 Md. Laws ch. 378 (HB 1388)
- VoidNon-competes are void for licensed veterinary practitioners and veterinary technicians. (effective June 1, 2024) 2024 Md. Laws ch. 378 (HB 1388)
- VoidLicensed architects: void if the employer had more than 30 employees mostly in Maryland at hire but, when it seeks enforcement, no longer has most employees in Maryland or has moved its principal place of business out of state (contracts executed on or after October 1, 2026). (effective October 1, 2026) 2026 Md. Laws ch. 301 (HB 1016)
Recent and pending changes
- October 1, 2026: HB 1016 (ch. 301, approved April 28, 2026): architect protection when the employer leaves Maryland. 2026 Md. Laws ch. 301
- July 1, 2025: Health care provisions of HB 1388 (2024 ch. 378) apply to contracts executed from this date. 2024 Md. Laws ch. 378
- June 1, 2024: HB 1388 takes effect, including the veterinary ban. 2024 Md. Laws ch. 378
- October 1, 2023: SB 591 (ch. 266) replaces the $15/hr or $31,200 test with 150% of the state minimum wage. 2023 Md. Laws ch. 266
Federal law
There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.
Frequently asked questions
Are non-competes enforceable in Maryland?
Void at or below $22.50/hr; health-care and vet limits. Maryland voids non-compete and conflict-of-interest clauses for employees earning equal to or less than 150% of the state minimum wage ($22.50 an hour, about $46,800 a year), for licensed veterinary practitioners and technicians, and for licensed health care workers providing direct patient care who earn $350,000 or less. Health care workers earning more can be bound for at most one year and 10 miles. Since October 1, 2026 licensed architects are also protected when their employer later moves its workforce or headquarters out of Maryland. Other covenants are judged for reasonableness, and courts may blue-pencil.
Is there a salary threshold for non-competes in Maryland?
Yes — $46,800. Earnings equal to or less than 150% of the state minimum wage under 3-413 ($15.00/hr) = $22.50/hr, about $46,800 a year at 2,080 hours (the statute is an hourly test)
Did the FTC ban non-competes in Maryland?
No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.
Official Sources
Figures checked against these sources on 2026-10-07Other states
Same category (Pay threshold / worker limits): Colorado, District of Columbia, Illinois, Maine, Massachusetts, Nevada, New Hampshire, Oregon
Protect information instead with a confidentiality agreement (NDA generator), or hiring in Maryland? Use the offer letter generator.
Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in Maryland.