Maryland: Noncompete Clauses Banned for Low Wage Workers

APPLIES TO

All Employers of MD Employees

EFFECTIVE

October 1, 2019

QUESTIONS?

Contact HR On-Call

(888) 378-2456

As a matter of public policy, SB 328 prohibits employers from including noncompete and conflict of interest provisions in employment contracts for employees earning less than $15 per hour, or $31,200 annually. If a noncompete or conflict of interest provision is found in an employment contract and restricts entry into employment with another employer, or restricts the employee from becoming self-employed in the same or similar business or trade, it shall be deemed null and void.

The bill applies to Maryland employees regardless of whether the contract was executed inside or outside of the State. The new legislation does not apply to employment contracts restricting the use of client lists or other proprietary client-related information.

Action Items

  1. Review the text of the bill here.
  2. Have noncompete and conflict of interest clauses reviewed by legal counsel for compliance with this new law.
  3. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2019 ManagEase

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