Maryland Bans Non-Competes for Some Healthcare Professionals

 Posted on October 29, 2024 in Employment Law

Following a trend across the nation, Maryland’s HB 1388 restricts non-compete agreements for some medical professionals. Certain veterinarians and vet technicians are exempt from non-compete and conflict of interest provisions in employment contracts as of June 1, 2024. As of July 1, 2025, some healthcare professionals who provide "direct patient care" will also no longer fall under non-compete and conflict of interest provisions if they earn $350,000 or less annually.

For those making more than this amount, non-compete provisions will not be enforceable if the contract states the non-compete is in place for more than a year or for more than ten miles from your current place of employment. If your employment contract prevents you from transitioning into self-employment or seeking other employment in the same industry, it will be unenforceable. The ban on non-competes does not apply to taking or using a client list or other proprietary client-related information.

Maryland employers will need to be aware of the federal and state changes to non-compete agreements when hiring or recruiting new employees. Business interests can still be protected under confidentiality and trade secret agreements. If you are unsure about whether the non-compete clause at your place of employment is legally binding, it can be beneficial to speak to a knowledgeable Columbia, MD non-compete attorney from Freedman Law, LLC.

What is a Non-Compete Agreement?

A non-compete agreement in the context of employment is a promise by the employee not to engage in the same type of business for a stated amount of time and within a certain distance as the employer. Non-compete agreements protect company trade secrets and customer relationships while maintaining a competitive advantage by preventing an employee from working for a competing business. Labor turnover is usually reduced for the same reason. The FTC broadly banned non-compete agreements across the nation earlier in 2024, although this ban was later overturned by a federal court in Texas.

What Types of Employers Usually Ask for a Non-Compete Agreement?

Non-compete agreements are often used in industries where protecting intellectual property and customer relationships is important. These industries include – but are not limited to – the following:

• Finance

• Engineering

•  Manufacturing

• Healthcare

• Pharmaceuticals

• Technology

What Should I Do if I Want to Start My Own Business but Have a Non-Compete Agreement?

Before making any plans to start your own business in the industry you currently work in, you should review the non-compete agreement you signed and speak to a knowledgeable employment attorney. There may be ways you can work around a non-compete agreement rather than challenging it.

Depending on what field you are in, Maryland’s ban on non-competes may affect your current employment agreement. Otherwise, you may be forced to start a competing business within the geographic restrictions outlined in your non-compete agreement. Your attorney will be able to tell you whether breaking or challenging a non-compete agreement is in your best interests – or could get you sued.

Contact a Howard County, MD Non-Compete Agreement Lawyer

When you choose an Ellicott City, MD non-compete agreement attorney from Freedman Law, LLC, you have taken an important first step in determining whether your non-compete is valid. Attorney Lindsay Freedman represents clients in federal and state courts and is rated one of the best employment lawyers in Annapolis, MD. Attorney Freeman is very hands-on, accessible, supportive, and aggressive when the situation warrants. Call 410-290-6232 to schedule your initial attorney meeting to discuss your employment law issue.