Megan Mechak
Wed, 09/27/2023
Maryland has long disfavored agreements that limit economic competition, so-called “non-compete” and “conflict of interest” agreements. Such agreements are banned in Maryland for workers making less than $15 per hour (or $31,200) per year since 2019. Under the law, “agreements” (whether they are contained in an employment agreement, contract, or similar document) that restrict covered workers from being employed by another employer (or opening their own business) in the same field are null and void because they are against the State’s public policy. The law permits “employment contract or a similar document or agreement” prohibiting employees and former employees from taking or using client lists “or other proprietary client-related information,” however.
Effective October 1, 2023, the ban will extend to higher paid workers, those earning 150% of the state minimum wage or less. When the state minimum wage increases to $15 per hour on January 1, 2024, the wage threshold will automatically adjust to ban non-compete and conflict of interest agreements for those making $22.50 per hour (or $46,800 annually for an employee working 40 hours per week) or less. Between October 1, 2023, and December 31, 2023, it will apply to Maryland’s two-tiered minimum wage threshold, applying to workers for small employers who earn $19.20 per hour or less and workers for larger employers who earn $19.86 per hour or less.
If your employer has implemented an illegal non-compete or conflict of interest agreement, contact MSE at info@mselaborlaw.com.
