Maryland is among the latest states to restrict noncompete agreements in employment contracts. A new state law, the Noncompete and Conflict of Interest Clauses for Veterinary and Health Care Professionals and Study of the Health Care Market, restricts the use of noncompete and conflict of interest agreements in certain employment contracts for Maryland veterinary and health care professionals. Noncompete agreements contractually prohibit workers from joining or starting a competing business after leaving their previous employment. These agreements typically contain terms designating for how long and where these restrictions apply. Similarly, conflict of interest agreements may function like noncompetes by prohibiting an employee from continuing to work in the same profession elsewhere.
Governor Wes Moore signed the act into law on April 25, 2024, with the goal of “encouraging job mobility, higher wages, and new firm creation” within Maryland’s veterinary and health care industries. The act introduced the noncompete ban in two phases. The first phase, which began June 1, 2024, banned noncompete agreements for veterinary practitioners and veterinary technicians. The second phase begins on July 1 and will ban noncompete agreements for certain licensed health care professionals.
The Federal Trade Commission projects that a Maryland statewide noncompete ban could raise total annual worker earnings by more than $1.37 billion, or an average of $653 per worker each year. Maryland previously banned noncompete agreements for all employees earning equal to or less than 150% of the state’s minimum wage. As of 2025, with the minimum wage set at $15.00 per hour, this threshold is $22.50 per hour, or $46,800 annually.
The Upcoming Noncompete Ban for Health Care Professionals
- Health Care Professionals Earning $350,000 or Less
Starting July 1, the act’s second phase will come into effect, applying the noncompete ban to health care professionals, including physicians, physician assistants, nurse practitioners, nurses, dentists, pharmacists, psychologists, optometrists, social workers, nursing home administrators, and massage therapists and workers who provide direct patient care and earn $350,000 or less in total annual compensation.
- Health Care Professionals Earning Over $350,000
However, for licensed health care professionals who provide direct patient care and earn more than $350,000 annually, noncompete agreements are still allowed, but only under strict limitations. Noncompete agreements for these health care professionals must not include: (1) a restrictive period of more than one year or (2) a geographic restriction of greater than ten miles from their principal place of employment.
In addition, the act introduces a new disclosure obligation for employers. Employers who employed a licensed health care professional who provided direct patient care and earned more than $350,000 must provide notice to a patient upon the patient’s request of the new location where the former employee will be practicing.
Exceptions to the Ban
There are several important exceptions to Maryland’s new noncompete law. First, the act does not ban agreements that protect an employer’s proprietary information, such as client/patient lists or other related information.
Second, noncompete provisions included in purchase or sale agreements may still be enforceable. While the act does not carve out an exception for noncompetes in the sale of a business, it applies specifically to employment contracts or similar agreements. Purchase and sale agreements are likely excluded because they are not similar to an employment contract.
Third, for health care professionals, the act applies prospectively to noncompete agreements executed on or after July 1. However, for veterinary professionals, the act is silent on whether it applies retroactively to noncompete agreements executed before June 1, 2024. The plain language of the act states that noncompete agreements for licensed veterinary practitioners and technicians are void, but it does not explicitly state whether this applies prospectively. However, since a provision that would have applied the act retroactively was removed from the final version of the bill, it is likely that the act applies only to agreements executed on or after June 1, 2024.
What Employers Should Do Next
Employers should review and update all employment contracts that were signed on or after July 1, 2025, to ensure compliance. The group of employees now subject to these agreements is very limited, and even for those employees who fit into the narrow group where these types of agreements can be executed, those agreements will be much more limited than in prior years. Employers would be wise to make sure that their agreements with upper-level employees comply with the act, and if they are not clear, to speak to a legal professional for help.
Brian Markovitz is a principal with Joseph, Greenwald & Laake in Greenbelt, Maryland. He represents whistleblowers in federal False Claims Act matters as well as individuals across the country in complex employment litigation and appellate matters involving wrongful termination, wage and hour claims, and employer retaliation in response to reporting fraud or misconduct and discrimination on the basis of race, gender, age, and sexual orientation. Brian may be reached at bmarkovitz@jgllaw.com.