Threshold regime

Non-compete enforceability in Maryland

Void for employees earning ≤ 150% of state minimum wage. Healthcare workers earning > $350,000 capped at 1 year / 10 miles.

What this means for you

Maryland is a threshold state: a non-compete is void below a statutory income floor and only potentially enforceable above it — and even above the floor it must still be reasonable in time, geography, and scope.

Primary statute

Md. Code, Lab. & Empl. § 3-716

Primary verified

https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-716

Effective: 2019-10-01
Last amended: 2024-10-01
Research verified: 2026-05-08

Doctrine

Blue-pencil discretionary. Courts may strike specific over-broad terms but the practice varies — over-broad covenants drafted in bad faith are often refused enforcement entirely.

Salary / wage threshold

$46,800

2026 value

150% of MD minimum wage. 2026 MD minimum wage $15.00/hr → 150% = $22.50/hr ≈ $46,800/yr full-time. ESTIMATE — re-verify against state DLLR annual notice.

Industry-specific rules

healthcare
Healthcare-license workers earning > $350,000: non-compete capped at 1 year duration and 10-mile geographic radius. Below the threshold = void.
Md. Code, Lab. & Empl. § 3-716(c)Secondary

Gotchas

NDAs and customer-list-protection clauses are NOT void under §3-716.
150% min-wage threshold updates as MD min-wage changes — confirm current-year value.

Federal context

The FTC's 2024 federal non-compete ban was vacated nationwide in Ryan v. FTC and removed from the Code of Federal Regulations in February 2026. There is no federal ban in force — so Maryland's state law controls. Read the federal status.

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