Updated June 04, 2024
A Maryland non-compete agreement gives the power to restrict a person’s ability to work in a specific field for a geographical area and duration. It is usually connected to an employment contract to limit competition after an employee is terminated. In Maryland, low-wage employees and certain specific employees are prohibited from entering a non-compete.
Laws
Legally Enforceable?
Yes, except for the following individuals:[1][2]
- employees making less than $22.50 per hour;
- employees in a position in which they:
- are required to be licensed under the Health Occupations Article;
- provide direct patient care; and
- earn equal to or less than $350,000 in total annual compensation; or
- employees licensed as a veterinary practitioners or veterinary technicians under Title 2, Subtitle 3 of the Agriculture Article.
Adequate Consideration
A non-compete is required to provide adequate consideration (such as being ancillary to an employment contract or the sale of a business) and reasonable to the extent that:[3][4]
- Employer protection. Protects the business of the employer;
- Undue hardship. It does not impose an undue hardship on the employee; and
- Public interest. It is not against the public interest.
Attorneys (prohibited)
A licensed attorney is prohibited from entering into a non-compete agreement that restricts their right to practice law.[5]
Continued Employment
Maryland courts have ruled that continued employment is deemed sufficient consideration for a non-compete.[6]
Maximum Term
A non-compete is considered reasonable for 3 years.[7]
Blue Penciling
A non-compete is allowed to be modified if a non-compete is overbroad and not deliberately unreasonable.[8]