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MD SB658

MD SB658
Labor and Employment - Noncompete and Conflict of Interest Provisions


summary

Introduced
01/29/2025
In Committee
01/29/2025
Crossed Over
Passed
Dead
04/08/2025

Introduced Session

2025 Regular Session

Bill Summary

Altering the noncompete and conflict of interest provisions in employment contracts or similar documents that are null and void as being against public policy.

AI Summary

This bill modifies Maryland's labor and employment laws regarding noncompete and conflict of interest provisions in employment contracts, establishing new restrictions on when and how such provisions can be used. The bill applies to different categories of employees, including those earning up to 150% of the state minimum wage, healthcare workers licensed under the Health Occupations Article who provide direct patient care (earning up to $350,000 annually), and veterinary practitioners. For most of these employees, noncompete or conflict of interest provisions that restrict an employee's ability to work for a new employer or become self-employed in the same or similar business after separation will be considered null and void as against public policy. For healthcare workers earning more than $350,000 annually, noncompete provisions are still allowed but with specific limitations: they cannot exceed one year from the last day of employment and cannot restrict employment beyond a 10-mile radius from the primary workplace. Additionally, for these higher-earning healthcare workers, employers must provide notice of a former employee's new practice location if requested by a patient. The bill is set to take effect on October 1, 2025, and aims to provide greater employment flexibility and mobility for workers in various sectors.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Senate Finance Hearing (13:00:00 2/19/2025 ) (on 02/19/2025)

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