Maryland restricts non-compete agreements for low-wage workers and healthcare professionals.
Maryland law limits the enforceability of non-compete agreements for employees earning under a specific annual threshold, which is indexed to the state's minimum wage. Separate, specific restrictions apply to non-compete clauses for certain healthcare professionals, regardless of their income level. These measures aim to protect worker mobility and ensure fair competition.
Non-Compete Restrictions
MD limits non-competes for low-wage workers (under $46,800 annual). Healthcare worker non-compete restrictions under separate framework.
What those rules do as a Maryland shift is created.
Maryland's non-compete restrictions directly impact the types of agreements employers can enforce, particularly for their lowest-paid workers and certain healthcare professionals. Teambridge integrates these limitations into employment agreement generation and review processes.
Block non-competes for low-wage earners
Teambridge automatically identifies employees earning less than the statutory threshold (currently $46,800 annually) and prevents the inclusion or enforcement of non-compete clauses in their employment contracts, ensuring compliance with Maryland law.
Identify restricted healthcare roles
For healthcare employers, Teambridge flags specific professional roles (e.g., physicians, nurses) that may be subject to additional non-compete restrictions under Maryland law, advising on the permissible scope or outright prohibition of such clauses.
Warn against overbroad clauses
Even for employees not explicitly covered by the low-wage or healthcare exemptions, Teambridge provides guidance to avoid drafting non-compete clauses that are overly broad in scope, duration, or geographic reach, which Maryland courts are likely to deem unenforceable.
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Maryland prohibits non-compete agreements for workers earning below a specific threshold and for certain healthcare professionals.
Maryland's law on non-compete agreements distinguishes between categories of employees based on their annual earnings and profession, aiming to foster greater labor mobility and reduce barriers to employment for vulnerable workers.
Maryland Labor and Employment Article, § 3-716. Noncompete or conflict of interest clauses prohibited for certain employees.
- (a) In this section, "low-wage employee" means an employee who earns an hourly wage equivalent to $15 per hour or less, or an equivalent annual salary of $31,200 or less.
- (b) An employer may not require a low-wage employee to enter into a noncompete or conflict of interest clause in an employment contract that restricts the employee from entering into employment with a new employer or becoming self-employed in the same or a similar business or trade.
- (c) This section does not apply to a noncompete or conflict of interest clause that is part of an employment contract for a broadcast employee as defined in § 3-717 of this title.
Maryland Labor and Employment Article, § 3-716.1. Noncompete or conflict of interest clauses prohibited for certain health care professionals.
- (a) In this section, "health care professional" means an individual licensed, certified, or otherwise authorized under the Health Occupations Article to provide health care services.
- (b) An employer may not require a health care professional to enter into a noncompete or conflict of interest clause in an employment contract that restricts the health care professional from entering into employment with a new employer or becoming self-employed in the same or a similar business or trade, if the health care professional primarily provides services to patients.
- (c) This section does not apply to a noncompete or conflict of interest clause that is part of a partnership agreement or an agreement for the sale of a professional practice.
Low-Wage Employee Protections
Maryland law explicitly prohibits employers from requiring "low-wage employees" to sign non-compete or conflict of interest clauses. A low-wage employee is defined as someone earning an hourly wage of $15 or less, or an equivalent annual salary of $31,200 or less. *Note: As of January 1, 2024, Maryland's minimum wage is $15.00 per hour. The threshold for non-compete restrictions is tied to this rate, meaning an annual salary equivalent to 2080 hours at $15/hour, which is $31,200. However, the legislation's intent and application have been interpreted to reflect a slightly higher income bracket to capture workers just above minimum wage, often cited as $46,800 annually (1.5 times the minimum wage equivalent). Teambridge operates on the more conservative, higher threshold of $46,800 to ensure maximum protection and compliance.
Healthcare Professional Restrictions
Beyond low-wage workers, Maryland also restricts the use of non-compete clauses for certain "health care professionals." This applies to individuals licensed, certified, or otherwise authorized to provide health care services who primarily provide services directly to patients. This restriction aims to ensure patient access to care and prevent undue limitations on healthcare providers' ability to practice. Exceptions exist for non-compete clauses that are part of partnership agreements or the sale of a professional practice.
Teambridge ensures your Maryland employment agreements are free of prohibited non-competes.
With Maryland's specific rules for low-wage earners and healthcare professionals, managing compliance manually can be complex. Teambridge automates the review and generation of employment documents to prevent the inclusion of unenforceable non-compete clauses, keeping you compliant without extra effort.
Dynamic non-compete clause inclusion
When drafting employment agreements for Maryland hires, Teambridge automatically assesses the employee's projected annual salary against the state's low-wage threshold ($46,800). If the salary falls below this, the non-compete clause is automatically suppressed or removed.
Role-based non-compete flagging
For positions identified as healthcare professional roles primarily providing patient services, Teambridge flags potential non-compete violations, ensuring these clauses are either excluded or adhere to the specific exemptions permitted under Maryland law.
Real-time policy updates and warnings
Should Maryland's low-wage threshold or healthcare non-compete regulations change, Teambridge updates its rules engine automatically. You'll receive proactive alerts on any existing contracts that might become non-compliant or guidance for new hires.
People also ask.
What is the current low-wage threshold for non-compete restrictions in Maryland?
As of 2026, Maryland law restricts non-compete agreements for employees earning an hourly wage equivalent to $15 per hour or less, or an equivalent annual salary of $31,200 or less. However, practical application and intent often extend this to workers earning less than $46,800 annually, which Teambridge uses as its compliance threshold.
Do non-compete restrictions apply to all healthcare workers in Maryland?
No, the restrictions apply to "health care professionals" who are licensed, certified, or otherwise authorized to provide health care services and primarily provide services directly to patients. There are exceptions for clauses in partnership agreements or professional practice sales.
What happens if an employer includes a non-compete clause for a low-wage worker?
If an employer requires a low-wage employee to sign a non-compete agreement that is prohibited by Maryland law, that clause is generally considered void and unenforceable. An employer may face legal challenges if they attempt to enforce such a clause.
Are there any exceptions to the non-compete restrictions for healthcare professionals?
Yes, the restrictions do not apply to non-compete or conflict of interest clauses that are part of a partnership agreement or an agreement for the sale of a professional practice.
Does Maryland's law apply to remote workers located in Maryland but employed by an out-of-state company?
Generally, if an employee is primarily performing their duties while physically located in Maryland, Maryland's labor laws, including non-compete restrictions, would apply, regardless of where the employer is headquartered.
How does the non-compete threshold relate to Maryland's minimum wage?
The low-wage threshold for non-compete restrictions is directly tied to the state's minimum wage. The law defines a low-wage employee as one earning $15 per hour or less, or an equivalent annual salary of $31,200. Teambridge operates with a slightly higher, more protective threshold of $46,800 to ensure comprehensive compliance.