As a reminder for healthcare employers in Maryland, new restrictions on non-compete and conflict of interest agreements take effect July 1, 2025. These changes apply to licensed healthcare professionals who provide direct patient care.

Overview:

• Non-competes are banned for healthcare workers earning $350,000 or less annually.

• For those earning more than $350,000, non-competes are only enforceable if:

• The restriction lasts no more than one year, and
  • The geographic limit is 10 miles or less from the primary place of employment.

• Employers must inform patients, upon request, where a former provider is now practicing.

• These rules apply to new agreements signed on or after July 1, 2025.

• Veterinary professionals have been under similar restrictions since June 1, 2024.

What Employers Should Do:

• Review and update employment agreements before July 1.
• Train HR and recruiting teams on the new requirements.
• Use alternative protections like confidentiality and non-solicitation clauses to safeguard business interests.

For additional information:

• Maryland Hits Non-Competes: Healthcare Pros Take Note (VensureHR)

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.