1 | 1 | | |
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2 | 2 | | |
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3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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5 | 5 | | *hb1288* |
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6 | 6 | | |
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7 | 7 | | HOUSE BILL 1288 |
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8 | 8 | | K3 5lr3034 |
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9 | 9 | | CF SB 658 |
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10 | 10 | | By: Delegates Rose, Griffith, McComas, and Miller |
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11 | 11 | | Introduced and read first time: February 7, 2025 |
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12 | 12 | | Assigned to: Economic Matters |
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13 | 13 | | |
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14 | 14 | | A BILL ENTITLED |
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15 | 15 | | |
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16 | 16 | | AN ACT concerning 1 |
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17 | 17 | | |
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18 | 18 | | Labor and Employment – Noncompete and Conflict of Interest Provisions 2 |
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19 | 19 | | |
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20 | 20 | | FOR the purpose of altering the noncompete and conflict of interest provisions in 3 |
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21 | 21 | | employment contracts or similar documents that are null and void as being against 4 |
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22 | 22 | | public policy; and generally relating to noncompete and conflict of interest 5 |
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23 | 23 | | provisions. 6 |
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24 | 24 | | |
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25 | 25 | | BY repealing and reenacting, with amendments, 7 |
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26 | 26 | | Article – Labor and Employment 8 |
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27 | 27 | | Section 3–716 9 |
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28 | 28 | | Annotated Code of Maryland 10 |
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29 | 29 | | (2016 Replacement Volume and 2024 Supplement) 11 |
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30 | 30 | | |
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31 | 31 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12 |
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32 | 32 | | That the Laws of Maryland read as follows: 13 |
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33 | 33 | | |
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34 | 34 | | Article – Labor and Employment 14 |
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35 | 35 | | |
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36 | 36 | | 3–716. 15 |
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37 | 37 | | |
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38 | 38 | | (a) (1) This subsection applies: 16 |
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39 | 39 | | |
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40 | 40 | | (i) to an employment contract or a similar document or agreement 17 |
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41 | 41 | | concerning: 18 |
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42 | 42 | | |
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43 | 43 | | 1. an employee who earns equal to or less than 150% of the 19 |
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44 | 44 | | State minimum wage rate established under § 3–413 of this title; 20 |
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45 | 45 | | |
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46 | 46 | | 2. employment in a position for which the employee: 21 |
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47 | 47 | | 2 HOUSE BILL 1288 |
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48 | 48 | | |
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49 | 49 | | |
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50 | 50 | | A. is required to be licensed under the Health Occupations 1 |
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51 | 51 | | Article; 2 |
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52 | 52 | | |
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53 | 53 | | B. is employed in a position that provides direct patient care; 3 |
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54 | 54 | | and 4 |
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55 | 55 | | |
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56 | 56 | | C. earns equal to or less than $350,000 in total annual 5 |
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57 | 57 | | compensation; or 6 |
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58 | 58 | | |
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59 | 59 | | 3. an employee licensed as a veterinary practitioner or 7 |
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60 | 60 | | veterinary technician under Title 2, Subtitle 3 of the Agriculture Article; and 8 |
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61 | 61 | | |
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62 | 62 | | (ii) whether or not the employer and employee entered into the 9 |
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63 | 63 | | employment contract or similar document or agreement in the State. 10 |
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64 | 64 | | |
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65 | 65 | | (2) This subsection does not apply to an employment contract or a similar 11 |
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66 | 66 | | document or agreement with respect to the taking or use of a client or patient list or other 12 |
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67 | 67 | | proprietary client–related or patient–related information. 13 |
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68 | 68 | | |
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69 | 69 | | (3) A noncompete or conflict of interest provision in an employment 14 |
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70 | 70 | | contract or a similar document or agreement that restricts the ability of an employee, ON 15 |
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71 | 71 | | SEPARATION FROM THE EMPLOYER , to enter into employment with a new employer or 16 |
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72 | 72 | | to become self–employed in the same or similar business or trade shall be null and void as 17 |
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73 | 73 | | being against the public policy of the State. 18 |
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74 | 74 | | |
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75 | 75 | | (b) (1) This subsection applies only to an employment contract or similar 19 |
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76 | 76 | | document or agreement concerning employment in a position for which the employee: 20 |
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77 | 77 | | |
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78 | 78 | | (i) is required to be licensed under the Health Occupations Article; 21 |
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79 | 79 | | |
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80 | 80 | | (ii) is employed in a position that provides direct patient care; and 22 |
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81 | 81 | | |
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82 | 82 | | (iii) earns more than $350,000 in total annual compensation. 23 |
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83 | 83 | | |
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84 | 84 | | (2) (i) The period for which a noncompete or conflict of interest 24 |
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85 | 85 | | provision in an employment contract or similar document or agreement is in effect may not 25 |
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86 | 86 | | exceed 1 year from the last day of employment. 26 |
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87 | 87 | | |
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88 | 88 | | (ii) The geographical restriction in a noncompete or conflict of 27 |
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89 | 89 | | interest provision in an employment contract or similar document or agreement may not 28 |
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90 | 90 | | exceed 10 miles from the primary place of employment. 29 |
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91 | 91 | | |
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92 | 92 | | (3) On request of a patient, an employer of an employee described in 30 |
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93 | 93 | | paragraph (1) of this subsection shall provide notice to a patient of the new location where 31 |
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94 | 94 | | a former employee will be practicing. 32 |
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95 | 95 | | HOUSE BILL 1288 3 |
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96 | 96 | | |
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97 | 97 | | |
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98 | 98 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1 |
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99 | 99 | | October 1, 2025. 2 |
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100 | 100 | | |
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