Featured / 5.18.2025

What Maryland Healthcare Workers Need to Know About the New Non-Compete Ban

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    Starting July 1, 2025, Maryland will limit the use of non-compete agreements and certain conflict-of-interest clauses for many healthcare and veterinary professionals.

    This is good news if you work in healthcare and have ever worried about being locked into a job because of a non-compete clause. The new law is designed to give you more freedom to change jobs, grow your career, and continue caring for patients without legal roadblocks.

    Let’s break down what this means for you, who is covered, and how to prepare if you’re thinking about switching jobs.

    What the New Law Does

    Maryland House Bill 1388 (HB 1388) updates the state’s Labor and Employment Code. The goal is simple: protect healthcare workers’ ability to find new work by limiting employers’ power to restrict where and when you can work after leaving a job.

    This law is part of a growing national trend. Lawmakers are recognizing that non-competes can hurt workers, especially in healthcare, where staff shortages are already an issue.

    Who Is Covered by the Ban?

    The law applies to licensed healthcare professionals who provide direct patient care, including:

    • Physicians and physician assistants
    • Nurses
    • Dentists
    • Counselors and therapists
    • Other patient-facing professionals under Maryland’s Health Occupations Article

    It also covers veterinary professionals, including veterinarians and veterinary technicians.

    The key factors are:

    • Direct patient care: You must work in a role where you directly treat or care for patients (human or animal).
    • Annual compensation: If you earn $350,000 or less per year, your employer cannot enforce a non-compete or conflict-of-interest clause against you at all.

    If you earn more than $350,000 annually, your employer may still use a limited non-compete, but only for:

    • One year after you leave the job
    • Within a 10-mile radius of your primary workplace

    What Counts as a Non-Compete or Conflict of Interest Clause?

    Any contract language that tries to stop you from:

    • Working for another practice or hospital
    • Opening your own practice
    • Taking a similar job with a competitor

    would likely be considered a non-compete under this law.

    This law also covers conflict of interest clauses that operate like non-competes by blocking you from working in your field after leaving.

    Important: The law does not ban:

    • Confidentiality agreements (protecting patient lists or proprietary information)
    • Non-solicitation clauses (stopping you from directly recruiting patients or coworkers after you leave)

    What About Current Employment Contracts?

    The new rules only apply to contracts signed on or after July 1, 2025. If you already have a non-compete in your current job, it remains enforceable until you sign a new agreement after that date.

    That means if you’re planning a job change in the next year, it’s smart to get legal advice before signing anything — your new contract could include restrictions that you’ll be stuck with unless you negotiate them out.

    Why This Matters for You

    If you’ve ever felt trapped by a non-compete, this law could give you more career freedom. You’ll have more leverage to leave a toxic workplace, negotiate better pay, or relocate without worrying about getting sued.

    It also helps patients by ensuring they can follow their provider to a new practice if they choose — something that was sometimes blocked under older non-compete rules.

    What to Do If You Have a Non-Compete Now

    • Review your contract: Know exactly what your agreement says about non-competes and conflicts of interest.
    • Talk to a lawyer: An employment attorney can explain whether your current non-compete is enforceable, and how the new law will affect you.
    • Be careful with timing: If you’re planning to leave your job, consider the date your new contract will be signed — waiting until after July 1, 2025, could give you stronger protections.

    Frequently Asked Questions

    Will this law apply to me if I work at a nonprofit hospital?
    Yes. This is a state law and applies regardless of whether your employer is for-profit or nonprofit.

    Can my employer still stop me from taking patients with me?
    Yes, they can still use non-solicitation clauses, which prevent you from actively contacting patients and asking them to follow you.

    What if my employer refuses to remove a non-compete from my new contract?
    You may still have to sign it, but it won’t be enforceable if you meet the law’s criteria. Having an attorney review the language can give you peace of mind.

    Does this apply if I work remotely or in telehealth?
    It depends on where you are licensed and where you provide care. A lawyer can help clarify if the law applies to your situation.

    Get Legal Help Before You Sign Anything

    Our job is to make sure you understand your rights and have the freedom to make the career choices that are best for you. If you are a healthcare professional in Maryland and have questions about a non-compete or conflict-of-interest clause in your contract, we can help you:

    • Review and explain your current agreement
    • Negotiate better terms for a new job
    • Fight back if your employer tries to enforce an illegal non-compete

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