In the current job market, non-compete agreements are frequently misapplied. Following landmark legislative shifts in 2024 and 2025, the legal landscape in Maryland has changed significantly. Before signing, it is vital to determine if your agreement is legally enforceable under current state statutes.
The wage threshold: automatic protections
Maryland law provides automatic protection for employees earning below specific income levels. Under state codes, the “150% Rule” remains the definitive standard for enforceability:
- Income limits: If you earn $24.00 per hour or less (approximately $49,920 annually), any non-compete clause in your contract is void as a matter of law.
- Prohibited provisions: Employers cannot circumvent this rule through “choice of law” clauses that attempt to apply the laws of other states.
This statutory protection ensures that low-to-middle-income workers are not barred from finding new employment within their field of expertise.
Healthcare and veterinary professionals
Maryland has implemented strict protections to safeguard public access to care. For most licensed practitioners earning $350,000 or less, non-compete agreements are generally prohibited. Even for high-earners above this threshold, the law imposes a mandatory cap: restrictions cannot exceed one year in duration or a 10-mile radius from the primary place of employment.
The status of the Federal Trade Commission (FTC) ban
It is a common misconception that non-competes are illegal nationwide. While the FTC attempted a total ban, that rule was struck down in Ryan LLC v. FTC. Consequently, the validity of your contract rests primarily on Maryland state statutes and the “reasonableness” test applied by state courts regarding geography and duration.
If your agreement exceeds what is necessary to protect legitimate business interests, it may be subject to judicial revision or total invalidation. Consulting with a labor attorney is essential to navigate these evolving Maryland standards.