Bill > HB1288

This bill modifies Maryland's labor and employment laws regarding noncompete and conflict of interest provisions in employment contracts, establishing new restrictions on such agreements. 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 and earn up to $350,000 annually, and veterinary practitioners. For most of these employee categories, any noncompete or conflict of interest provision that restricts an employee from entering new employment or becoming self-employed in the same or similar business after separation from their employer will be considered null and void as against public policy. For healthcare workers earning more than $350,000 annually, noncompete agreements are still permitted 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 place of employment. Additionally, for these higher-earning healthcare workers, employers must provide notice to patients about a former employee's new practice location upon patient request. The bill is set to take effect on October 1, 2025, and aims to provide greater employment flexibility and mobility for workers while maintaining some protections for employers in specific circumstances.

Business and Industry

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1288?ys=2025RS