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Noncompete Agreements for Low-Wage Workers Banned in Maryland as of Oct. 1

Noncompete Agreements for Low-Wage Workers Banned in Maryland as of Oct. 1

A new law in Maryland that prevents employers from entering into noncompete agreements with employees who earn $15 per hour or less or $31,000 annually went into effect on October 1, 2019. The new law was passed on May 25, 2019.

Noncompete agreements are agreements that restrict an employee’s ability to find employment with a new employer that is in a similar business as their previous employer. Under the new law, agreements that are the subject to the act are those “that restrict 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.”

The law does not limit the restrictions to those that only limit an employee after they leave employment. Therefore, the law likely bans restrictions on moonlighting or side work as well.

After the new law went into effect, any noncompete restrictions between employers and covered employees became null and void, regardless of whether the parties entered into the agreement in Maryland or outside the state.

If your employer required you to sign a noncompete agreement that is limiting your ability to find new employment, the attorneys at Lebau & Neuworth may be able to help. For more information, contact us at 888.456.2529 or lebauneuworth.com/contact-us.

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