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October 13, 2023
Under existing Maryland law, employers may not require an employee or prospective employee to agree to a non-competition restriction (one that limits the ability to work for another employer or become self-employed in the same or similar business or trade) if they earn $15.00 or less per hour, or $31,200 or less annually.
Effective October 1, 2023, Maryland has raised the salary threshold on its non-compete ban to 150% of the state’s minimum wage, meaning $19.88 or less per hour (the current minimum wage of $13.25 * 150%), or $41,350 annually. See Senate Bill 591.
Note: Earlier this year, Maryland passed the Fair Wage Act of 2023, which will increase the minimum wage to $15.00 per hour as of January 1, 2024. Thus, the threshold for the ban on non-competition restrictions will increase in 2024 to $22.50 per hour, or $46,800 annually.
The author of this article, Patricia Tsipras, is a member of the Bar of Pennsylvania This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice in Pennsylvania, Maryland, or any other jurisdiction, nor does it establish an attorney-client relationship with any reader of the article where one does not exist. Always consult an attorney with specific legal issues.
