Maryland permits non-compete agreements in some circumstances, but recent legislation and longstanding court decisions have significantly limited their enforceability.

By statute, non-competes are unenforceable against employees earning less than 150% of Maryland’s minimum wage (approximately $49,920 annually as of 2026). Non-compete agreements for licensed veterinarians and veterinary technicians are also void, regardless of compensation. In addition, healthcare professionals who provide direct patient care and earn $350,000 or less annually cannot be subject to non-compete agreements. For higher-earning healthcare professionals, non-competes are enforceable only if they last no more than one year and are limited to a radius of 10 miles from the employee’s primary workplace. These restrictions do not apply to confidentiality agreements protecting patient lists, client information, trade secrets, or other proprietary information.

Even where no statute prohibits a non-compete, Maryland courts will enforce such agreements only if they are reasonable in duration and geographic scope and are necessary to protect legitimate business interests, such as customer relationships or confidential information. Courts may refuse to enforce agreements that are overly broad, impose undue hardship on employees, or harm the public interest.

In some cases, courts may “blue pencil” a restrictive covenant by removing clearly severable, unenforceable language. However, courts cannot rewrite the agreement, and if the problematic provisions are not easily separable, the entire non-compete may be invalidated.

Although the Federal Trade Commission attempted to ban non-compete agreements nationwide in 2024, the rule was blocked in federal court and ultimately abandoned. As a result, Maryland law remains the primary authority governing the enforceability of non-compete agreements in the state.

This article is for general informational purposes only and does not constitute legal advice. Consult a Maryland employment attorney regarding your specific circumstances.