Maryland Low-Wage Workers Are Exempt From Non-Compete Clauses

Joining the wave of jurisdictions limiting the competitive restraints employers may place on low-wage employees is Maryland. Maryland's Noncompete and Conflict of Interest Clauses Act (the "Act")―which passed without Governor Larry Hogan's signature on May 28, 2019―will take effect on October 1, 2019. Recognizing that certain non-compete and conflict-of-interest clauses violate Maryland's public policy and are therefore null and void, the Act prohibits employers from mandating that certain employees not join another employer or become self-employed in a same or similar business area. The covered employees are those who earn equal to or less than $15 per hour or $31,200 annually. This prohibition applies even if the parties entered into the employment agreement outside of Maryland and is not restricted to only post-employment actions. That is, a qualified employee may work for a competitor even during the term of employment.