New Threshold Requirement for Maryland Noncompete Provisions

Under current Maryland law, a noncompete or conflict of interest provision in an employment contract that restricts the ability of an employee to enter into employment with a new employer or to become self-employed in the same or similar business or trade is null and void as being against the public policy of the state. This restriction is applicable to employees who earn equal to or less than: (i) $15 per hour, or (ii) $31,200 annually.

Effective October 1, 2023, the restriction will apply to employees who earn equal to or less than 150% of the State minimum wage rate.