EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1288*
HOUSE BILL 1288
K3 5lr3034
CF SB 658
By: Delegates Rose, Griffith, McComas, and Miller
Introduced and read first time: February 7, 2025
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Labor and Employment – Noncompete and Conflict of Interest Provisions 2
FOR the purpose of altering the noncompete and conflict of interest provisions in 3
employment contracts or similar documents that are null and void as being against 4
public policy; and generally relating to noncompete and conflict of interest 5
provisions. 6
BY repealing and reenacting, with amendments, 7
Article – Labor and Employment 8
Section 3–716 9
Annotated Code of Maryland 10
(2016 Replacement Volume and 2024 Supplement) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Labor and Employment 14
3–716. 15
(a) (1) This subsection applies: 16
(i) to an employment contract or a similar document or agreement 17
concerning: 18
1. an employee who earns equal to or less than 150% of the 19
State minimum wage rate established under § 3–413 of this title; 20
2. employment in a position for which the employee: 21
2 HOUSE BILL 1288
A. is required to be licensed under the Health Occupations 1
Article; 2
B. is employed in a position that provides direct patient care; 3
and 4
C. earns equal to or less than $350,000 in total annual 5
compensation; or 6
3. an employee licensed as a veterinary practitioner or 7
veterinary technician under Title 2, Subtitle 3 of the Agriculture Article; and 8
(ii) whether or not the employer and employee entered into the 9
employment contract or similar document or agreement in the State. 10
(2) This subsection does not apply to an employment contract or a similar 11
document or agreement with respect to the taking or use of a client or patient list or other 12
proprietary client–related or patient–related information. 13
(3) A noncompete or conflict of interest provision in an employment 14
contract or a similar document or agreement that restricts the ability of an employee, ON 15
SEPARATION FROM THE EMPLOYER , to enter into employment with a new employer or 16
to become self–employed in the same or similar business or trade shall be null and void as 17
being against the public policy of the State. 18
(b) (1) This subsection applies only to an employment contract or similar 19
document or agreement concerning employment in a position for which the employee: 20
(i) is required to be licensed under the Health Occupations Article; 21
(ii) is employed in a position that provides direct patient care; and 22
(iii) earns more than $350,000 in total annual compensation. 23
(2) (i) The period for which a noncompete or conflict of interest 24
provision in an employment contract or similar document or agreement is in effect may not 25
exceed 1 year from the last day of employment. 26
(ii) The geographical restriction in a noncompete or conflict of 27
interest provision in an employment contract or similar document or agreement may not 28
exceed 10 miles from the primary place of employment. 29
(3) On request of a patient, an employer of an employee described in 30
paragraph (1) of this subsection shall provide notice to a patient of the new location where 31
a former employee will be practicing. 32
HOUSE BILL 1288 3
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
October 1, 2025. 2