February 6th, 2025
Noncompete Ban Set to Take Place for Certain Healthcare Professionals
Posted in: Employment Law Tagged: Darla J. McClure
Author: Darla J. McClure
Starting July 1, 2025, Maryland takes a step further in banning noncompete agreements. The focus this time is on licensed healthcare professionals. Healthcare professionals who are licensed under the Maryland Health Occupations Article, provide direct patient care, and earn $350,000 or less in total annual compensation cannot be subject to a noncompete provision contained in an employment agreement, conflict of interest policy or any other document that “restricts the ability of an employee to enter into employment with a new employer or to become self-employed in the same or similar business…” See Section 3-716 (a) (3) of the Labor and Employment Article of the Annotated Code of Maryland.
Some of the healthcare professionals who are included in this new law are:
- Dentists
- Registered nurses
- Optometrists
- Physicians
- Podiatrists
- Counselors and Therapists
- Psychologists
- Social workers
- Chiropractors
- Physical Therapists
Licensed healthcare professionals who make over $350,000 in total compensation can be subject to a noncompete, however the restriction cannot go beyond one year from the last day of employment or exceed a 10-mile radius of the employee’s primary place of employment. Employers will also be required, at the request of the patient, to inform patients of the departing employee’s new practice location.
This provision does not however, apply to other restrictive covenants employees may enter into such as non-disclosure and confidentiality agreements.
This new law is not retroactive so it will apply to any non-competes entered into after July 1, 2025. Employers in the medical sector should review their employment documents now to ensure compliance with the new law. If you have any questions about the bill or wish to discuss how best to protect your business, please contact a Stein Sperling employment law attorney.
