Maryland Non-Compete Agreement
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Maryland Legal Requirements
Key MD statutes and obligations that apply to your non-compete agreement.
Requirements
- Governed by common law with statutory limitations under Md. Lab. & Emp. §3-716
- Must be in writing, signed by the employee, and supported by adequate consideration (employment itself is sufficient consideration when presented at hiring)
- Must protect a legitimate business interest such as trade secrets, specialized training, or customer relationships
Restrictions & Limits
- Void and unenforceable for employees earning $15 per hour or less (or $31,200 per year or less) — this income threshold applies automatically and cannot be waived by the employee
- For covered workers, the duration should not exceed 1–2 years and geographic scope must be tied to where the employee actually worked or had customer contact
- Maryland courts apply a reasonableness test and may modify overbroad restrictions rather than voiding them entirely in some cases
Official Statute References
Primary Maryland statutes governing this document type.
Maryland Non-Compete Agreement FAQ
Common questions about non-compete agreements under Maryland law.
What is the income threshold for non-competes in Maryland?
Maryland Lab. & Emp. §3-716 makes non-compete and conflict of interest agreements unenforceable for employees earning $15 per hour or less ($31,200 per year). These employees cannot waive this protection. Employers should review each employee's compensation before including non-compete clauses.
What duration is considered reasonable for a Maryland non-compete?
Maryland courts generally consider 1 to 2 years to be a reasonable duration for non-compete agreements. Courts also look at geographic scope (must be tied to where the employee worked), the breadth of prohibited activities, and whether the restriction genuinely protects a legitimate business interest. Courts may blue-pencil — reduce — an unreasonably long period in appropriate cases.
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Non-Compete Agreement by State
Laws vary significantly by state. Find the right form for your location.
Disclaimer: LegalLawDocs.com provides self-help legal documents for informational purposes only. The documents and information on this site do not constitute legal advice and are not a substitute for consultation with a licensed attorney. Laws vary by state and change frequently — review your document with a qualified professional before relying on it.