Maryland non-compete law: Lab. & Empl. 3-716 for recruiters

Maryland voids non-competes for defined groups and leaves the rest to the courts. Labor and Employment section 3-716 makes a noncompete or conflict of interest provision null and void for employees earning 150 percent of the State minimum wage or less ($22.50 an hour at today's $15 rate), for licensed health care workers in direct patient care earning $350,000 or less, for licensed veterinary practitioners and technicians, and, from October 1, 2026, for licensed architects at employers that move their workforce or headquarters out of state. Health care workers above $350,000 can be bound for at most one year and 10 miles. Everyone else falls under a common-law reasonableness test. That is the law as of October 2026.

For a recruiter, Maryland means checking which group a candidate is in before anything else, and doing it without asking about pay in a way that breaks Maryland's salary history ban. The general screen is in non-compete questions for candidates, and the agency and client clauses are in non-solicitation clauses for recruiters.

What does Maryland's non-compete statute say?

Section 3-716(a) says that, for the employees it covers, "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." It applies "whether or not the employer and employee entered into the employment contract or similar document or agreement in the State."

Two features are easy to miss. "Conflict of interest provision" means the rule also reaches clauses that stop a covered worker from taking a second job in the same line of work, which matters for hourly staff who hold two jobs. And the subsection "does not apply to" provisions about "the taking or use of a client or patient list or other proprietary client-related or patient-related information," so a covered worker can still be held to a client-list or confidentiality clause.

Who is protected, and since when?

The original section came from Chapter 753 of 2019 (SB 328), effective October 1, 2019, which became law without the Governor's signature under Article II, Section 17(c) of the Maryland Constitution. For the architect rule, the "enforcement date" is the earliest date the employer files suit, starts arbitration or other formal dispute resolution, or demands in writing that the employee comply.

How is the wage threshold calculated?

The statute ties the threshold to "150% of the State minimum wage rate established under § 3-413," not to county minimums. The Maryland Department of Labor lists the State minimum wage as $15 per hour as of October 2026. One hundred fifty percent of that is $22.50 an hour, or $46,800 a year at 2,080 hours (our arithmetic). Montgomery, Howard and Prince George's counties set higher local minimums, but the statute's text points to the State rate.

The $350,000 health care line is measured in "total annual compensation," a broader term than wages. Whether bonuses, call pay or benefits count for a particular clinician is a question for counsel.

What about everyone else?

For employees outside those groups, Maryland has no statutory test, salary floor or notice rule. Courts apply common law. As generally stated in Holloway v. Faw, Casson & Co. (1990), a restrictive covenant is enforced only if it protects a legitimate interest of the employer, is no wider in time and geographic area than reasonably necessary, does not impose undue hardship on the employee and does not disregard the public interest. How far a Maryland court will trim an overbroad clause rather than refuse it is not settled by statute; counsel should advise on the specific wording.

Maryland non-compete rules at a glance

What should a recruiter ask a Maryland candidate?

Maryland's salary history ban means you should not ask a candidate what they earn to test the thresholds. Ask about the agreement and the role instead, and let the client's counsel handle pay with the candidate's own lawyer if it comes to that.

MARYLAND CANDIDATE — restrictive agreements

1. "Have you signed a non-compete, a conflict of interest or
    moonlighting clause, a client non-solicit, or a confidentiality
    agreement with your current or a past employer?"
2. "How long does it last after you leave, and what area or clients
    does it cover?"
3. "When was it signed?" (Health care: before or after July 1, 2025.
    Architects: before or after October 1, 2026.)
4. "Do you hold a Maryland health occupations, veterinary or
    architect license, and does your job involve direct patient care?"
5. "Does it name which state's law applies or where disputes go?"
Always: "We don't want any confidential information, documents or
client lists from your current employer."

• Do not ask "do you earn more than $22.50 an hour?" or "more than $350,000?" That is asking for pay history in another form.
• Do not tell a nurse "Maryland banned these." The ban turns on the license, direct patient care, compensation and a July 1, 2025 signing date.
• Do record "Registered nurse, direct patient care, 12-month, 15 miles, signed September 2025" and let counsel apply the thresholds.

What is the risk to the hiring company?

For a candidate outside the protected groups, a former employer that persuades a court its covenant is reasonable can seek an injunction limiting the new hire's work or customers, and may also bring claims against the new employer, for example alleging it interfered with the contract or received confidential information; how that plays out depends on what the new employer knew and did, which is a question for its counsel. For protected candidates, a client-list or confidentiality clause still applies, so the "no confidential information" line matters as much as the non-compete analysis.

Practical steps: tell the client before final interviews, let its counsel review the agreement before the offer, and say again at the offer that the company wants no confidential information. The offer call script is the place to confirm it.

Where does the federal FTC rule stand?

It does not apply. A federal court set aside the FTC's 2024 rule; on September 5, 2025 the Commission voted 3-1 to dismiss its appeals and accede to the vacatur, and a February 12, 2026 Federal Register notice removed it from the Code of Federal Regulations. Maryland law governs Maryland covenants.

Staffing agencies and their own agreements

Section 3-716 applies to staffing firms as employers. A temporary worker you employ at or below $22.50 an hour cannot be bound by a noncompete or conflict of interest clause of the kind the statute describes; whether a clause stopping the worker from going direct to a client falls within it is a question for counsel. A conversion fee charged to the client is a different contract, between agency and client; see temp-to-perm conversion fee and no-poach agreements and antitrust law, and check health care contracts against the 2025 rules.

Maryland still licenses some health care staffing; see the Maryland staffing agency license guide and hiring employees in Maryland. Postings need wage ranges under the Maryland pay transparency law; criminal history waits under Maryland ban-the-box; there is no state E-Verify mandate (E-Verify in Maryland); and recording a call needs every party's consent under the Maryland recording consent law. Other 2026 and 2027 changes are in new hiring laws in Maryland for 2027.

A Maryland checklist

• Restrictive-agreement question asked of every candidate, in the same words, including conflict of interest clauses.
• License, direct patient care and signing date recorded for health care, veterinary and architect candidates.
• No pay questions asked to test the thresholds.
• Your own temporary workers' agreements checked against the $22.50 an hour line.
• No opinion on enforceability given; candidate pointed to their own lawyer.
• Hiring company told before final interviews; counsel reviews before the offer.
• "No confidential information or client lists" said at the screen and again at the offer.