Maryland Non-compete Agreement Template

A Maryland non compete agreement is a written contract in which a worker promises not to compete with the employer's business for a set time after leaving a job. Maryland law makes a noncompete provision void for an employee who earns 150% of the State minimum wage or less, for licensed health care employees who give direct patient care and earn no more than the statute's compensation ceiling, and for veterinary practitioners and technicians.[1] Create a free Maryland non compete agreement with the builder below or download the PDF template.

Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current Maryland law. If you notice an error or outdated information, please contact us.

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Employers use a non-compete agreement template to protect business information such as customer lists, pricing, methods, and plans for future products. Companies often ask a new hire to sign before the person sees that information.

A typical Maryland non compete agreement names the employer and the worker. It says what work the worker may not do for a competitor, for how long, and in which area. The worker, called the recipient on some forms, also agrees to keep the company's confidential information private.

Before you fill in the template, gather a few details:

  • The full legal names and addresses of the employer and the worker.
  • The date the agreement takes effect.
  • A plain description of the work and the businesses the agreement covers.
  • The length of the restriction and the area it covers.

Read every blank before you sign. A signed agreement is hard to change later, and an attorney can tell you how Maryland law applies to your job and pay.

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In Maryland, a noncompete is void under Md. Code, Lab. & Empl. § 3-716 for an employee who earns 150% of the State minimum wage or less, and for certain other workers the statute lists. Discover more about the most popular states requested by our website users when it comes to non-compete agreements.

Maryland Non-compete Law and Restrictions

Maryland's rule on non-compete agreements is Section 3-716 of the Md. Code, Lab. & Empl. The statute makes a noncompete or conflict of interest provision in an employment contract null and void as against the state's public policy, but only for the employees it lists. They are employees who earn 150% of the State minimum wage or less, employees licensed under the Health Occupations Article who give direct patient care and earn $350,000 or less in total annual compensation, and licensed veterinary practitioners and veterinary technicians. A covered provision is one that restricts the employee from taking a new job or becoming self-employed in the same or similar business or trade. The void rule does not reach a provision on taking or using client or patient lists or other proprietary client or patient information, and the statute does not set the rule for other employees.[1]

The statute puts it this way:

A noncompete or conflict of interest provision in an employment contract or a similar document or agreement 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 or trade shall be null and void as being against the public policy of the state.

Md. Code, Lab. & Empl. § 3-716

The same section adds these rules:

  • Low-wage employee. The statute defines a low-wage employee as one who earns equal to or less than 150% of the State minimum wage rate established under § 3-413 of the same title.[1]
  • Distance. For a licensed health care employee who gives direct patient care and earns more than $350,000 in total annual compensation, the geographical restriction may not exceed 10 miles from the primary place of employment.[1]
  • Time. For that same health care employee, the restriction may not last more than 1 year from the last day of employment. The statute sets no time limit for other employees.[1]
  • Health care workers. One part of the statute applies only to a position where the employee must be licensed under the Health Occupations Article, provides direct patient care, and earns more than $350,000 in total annual compensation.[1]
  • Patient notice. On request of a patient, the employer of such an employee must give the patient notice of the new location where the former employee will be practicing.[1]
Not sure whether a restriction in your draft fits the statute? Ask a Maryland attorney to review it before anyone signs.

Questions to Ask Before You Sign

A non-compete agreement limits what a person can do after the job ends, so it helps to read it with a few questions in mind. These questions are practical advice, not Maryland legal requirements, and an attorney can tell you how the law applies to your situation.

  • Does the restriction protect something real, such as trade secrets, client information, or the company's reputation?
  • How unique are the worker's skills, and how hard would they be to replace?
  • Would the restriction leave the worker unable to earn a living in their field?
  • Does the agreement state the length of the restriction and the area it covers in plain words?
  • Does the agreement say what counts as a breach?

An employer can ask the same questions from the other side. A clear description of what the agreement protects, how long it lasts, and where it applies makes the paper easier to read and easier to review with a lawyer. A worker can ask for time to review the draft before signing it.

If you meet with an attorney, bring the full text of the agreement, your job description, and your pay details. Also bring any other paper the agreement mentions. A lawyer can compare a Maryland non compete agreement with Section 3-716 and point out the clauses worth a second look.

Frequently Asked Questions

These answers explain how Section 3-716 of the Md. Code, Lab. & Empl. treats a noncompete provision in an employment contract. The statute declares such a provision null and void as against public policy for the employees it lists, and adds time and distance limits for higher-paid health care employees who give direct patient care.[1]

What is the non-compete law in Maryland 2026?

The law is Section 3-716 of the Md. Code, Lab. & Empl. It covers these points:

  • A noncompete provision in an employment contract is null and void as against public policy for the employees the statute lists.
  • A low-wage employee earns equal to or less than 150% of the State minimum wage rate.
  • For a licensed health care employee who gives direct patient care and earns more than $350,000, the distance limit is 10 miles and the time limit is 1 year.
  • Health care workers earning more than $350,000 get a patient notice rule.[1]

Maryland law makes a noncompete provision null and void for the employees Section 3-716 lists: employees who earn 150% of the State minimum wage or less, licensed health care employees who give direct patient care and earn $350,000 or less, and veterinary practitioners and technicians.[1] Section 3-716 also sets out the limits and exceptions listed above.

What is the statute of non-competes in Maryland?

Section 3-716 of the Md. Code, Lab. & Empl. is the statute. For a licensed health care employee who gives direct patient care and earns more than $350,000 in total annual compensation, its limits are 10 miles from the primary place of employment and 1 year from the last day of employment.[1]

Are you legally bound by a non-compete agreement?

Section 3-716 declares a noncompete or conflict of interest provision in an employment contract null and void as against the public policy of the state for the employees it lists: those who earn 150% of the State minimum wage or less, licensed health care employees who give direct patient care and earn $350,000 or less, and veterinary practitioners and technicians. That covers a provision that restricts an employee from working for a new employer or becoming self-employed in the same or similar business or trade.[1]

Are Non-Compete Agreements Enforceable in Maryland?

A noncompete provision of that kind is null and void under Section 3-716 of the Md. Code, Lab. & Empl. if you are one of the employees the statute lists, and an attorney can tell you whether your own agreement falls within the statute.[1]

General information, not legal or tax advice.

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Sources

  1. Md. Code, Lab. & Empl. § 3-716.
Published: Aug 22, 2022
Jennifer M. Settles
Jennifer M. Settles
Author & Attorney
With over 25 years of experience as a business and transactional attorney, Jennifer has mastered the craft of closing highly successful deals for her clients. Through her wide-ranging expertise in commercial contracts, real estate transactions, M&A and corporate law, Jennifer secures results that are second-to-none.