New proposed laws would additional prohibit non-competes in Maryland. – Cyber Tech

By Greg Care

A brand new legislative proposal might add to the boundaries Maryland regulation locations on non-competition clauses (or, “non-competes,” as they’re generally recognized).

Non-competes are contractually-binding guarantees by a employee to not work for or personal a enterprise that’s engaged in basically the identical work they do for his or her current employer for some time period after the employment relationship ends and in a prescribed geographic space.

It is a frequent subject of dialogue in my blogs, as a result of there have been so many regulatory, legislative, and litigation developments round this hot-button situation. Those that have adopted my prior posts are conversant in the Federal Commerce Fee’s short-lived regulation that might have nearly completely banned non-competes nationwide and the Maryland Normal Meeting’s 2024 regulation that outlawed non-competes for veterinarians and patient-facing medical professionals incomes $350,000 or much less yearly.

Over and once more, these developments train that a lot of the progress on this situation happens on the state and native ranges. So, it’s price noting a brand new proposal, SB 900 and its Home cross-file (HB 1016), that, if handed, would place new limits on non-competes.

The “first studying,” or preliminary draft, of those equivalent payments, sponsored by Senator Justin Prepared (R) and Delegate Andrew C. Pruski (D), respectively, would forestall average to giant employers that relocate themselves or a majority of their workers exterior of Maryland from imposing a non-compete. Particularly, the proposal is focused at an employer that:

(a) “at any time through the worker’s employment employs greater than 30 workers, nearly all of whom are positioned within the state; and”

(b) “at any time throughout or subsequent to the worker’s employment, relocates, reorganizes, or in any other case ceases to have nearly all of its workers or its principal workplace positioned within the state.”

The Home invoice can be heard by the Authorities, Labor, and Elections Committee on February 19, 2026, and the Senate invoice can be heard by the Finance Committee on March 11, 2026. Keep tuned for updates.

When you’ve got questions concerning non-competes in your scenario, please contact us at the moment to see if we will help along with your specific circumstances.

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