Maryland 2025 Regular Session

Maryland House Bill HB1288 Compare Versions

Only one version of the bill is available at this time.
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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *hb1288*
66
77 HOUSE BILL 1288
88 K3 5lr3034
99 CF SB 658
1010 By: Delegates Rose, Griffith, McComas, and Miller
1111 Introduced and read first time: February 7, 2025
1212 Assigned to: Economic Matters
1313
1414 A BILL ENTITLED
1515
1616 AN ACT concerning 1
1717
1818 Labor and Employment – Noncompete and Conflict of Interest Provisions 2
1919
2020 FOR the purpose of altering the noncompete and conflict of interest provisions in 3
2121 employment contracts or similar documents that are null and void as being against 4
2222 public policy; and generally relating to noncompete and conflict of interest 5
2323 provisions. 6
2424
2525 BY repealing and reenacting, with amendments, 7
2626 Article – Labor and Employment 8
2727 Section 3–716 9
2828 Annotated Code of Maryland 10
2929 (2016 Replacement Volume and 2024 Supplement) 11
3030
3131 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
3232 That the Laws of Maryland read as follows: 13
3333
3434 Article – Labor and Employment 14
3535
3636 3–716. 15
3737
3838 (a) (1) This subsection applies: 16
3939
4040 (i) to an employment contract or a similar document or agreement 17
4141 concerning: 18
4242
4343 1. an employee who earns equal to or less than 150% of the 19
4444 State minimum wage rate established under § 3–413 of this title; 20
4545
4646 2. employment in a position for which the employee: 21
4747 2 HOUSE BILL 1288
4848
4949
5050 A. is required to be licensed under the Health Occupations 1
5151 Article; 2
5252
5353 B. is employed in a position that provides direct patient care; 3
5454 and 4
5555
5656 C. earns equal to or less than $350,000 in total annual 5
5757 compensation; or 6
5858
5959 3. an employee licensed as a veterinary practitioner or 7
6060 veterinary technician under Title 2, Subtitle 3 of the Agriculture Article; and 8
6161
6262 (ii) whether or not the employer and employee entered into the 9
6363 employment contract or similar document or agreement in the State. 10
6464
6565 (2) This subsection does not apply to an employment contract or a similar 11
6666 document or agreement with respect to the taking or use of a client or patient list or other 12
6767 proprietary client–related or patient–related information. 13
6868
6969 (3) A noncompete or conflict of interest provision in an employment 14
7070 contract or a similar document or agreement that restricts the ability of an employee, ON 15
7171 SEPARATION FROM THE EMPLOYER , to enter into employment with a new employer or 16
7272 to become self–employed in the same or similar business or trade shall be null and void as 17
7373 being against the public policy of the State. 18
7474
7575 (b) (1) This subsection applies only to an employment contract or similar 19
7676 document or agreement concerning employment in a position for which the employee: 20
7777
7878 (i) is required to be licensed under the Health Occupations Article; 21
7979
8080 (ii) is employed in a position that provides direct patient care; and 22
8181
8282 (iii) earns more than $350,000 in total annual compensation. 23
8383
8484 (2) (i) The period for which a noncompete or conflict of interest 24
8585 provision in an employment contract or similar document or agreement is in effect may not 25
8686 exceed 1 year from the last day of employment. 26
8787
8888 (ii) The geographical restriction in a noncompete or conflict of 27
8989 interest provision in an employment contract or similar document or agreement may not 28
9090 exceed 10 miles from the primary place of employment. 29
9191
9292 (3) On request of a patient, an employer of an employee described in 30
9393 paragraph (1) of this subsection shall provide notice to a patient of the new location where 31
9494 a former employee will be practicing. 32
9595 HOUSE BILL 1288 3
9696
9797
9898 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
9999 October 1, 2025. 2
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