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*hb1016*
HOUSE BILL 1016
K3 (6lr2649)
ENROLLED BILL
— Government, Labor, and Elections/Finance —
Introduced by Delegate Pruski Delegates Pruski, Lehman, Ruth, Stewart, and
Terrasa
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
Labor and Employment – Noncompete and Conflict of Interest Clauses – 2
Licensed Architects – Employer Workforce Relocation and Out–of–State 3
Employers 4
FOR the purpose of applying certain provisions of law establishing that certain noncompete 5
and conflict of interest provisions in certain employment contracts are null and void 6
as being against the public policy of the State to employees of licensed architects 7
employed by certain employers that relocate the majority of its employees outside the 8
State or have its principal place of business outside the State; and generally relating 9
to noncompete and conflict of interest clauses in employment contracts. 10
BY repealing and reenacting, with amendments, 11
Article – Labor and Employment 12
Section 3–716 13
2 HOUSE BILL 1016
Annotated Code of Maryland 1
(2025 Replacement Volume) 2
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
That the Laws of Maryland read as follows: 4
Article – Labor and Employment 5
3–716. 6
(a) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE 7
MEANINGS INDICATED. 8
(II) “ENFORCEMENT DATE ” MEANS THE EARLIEST D ATE ON 9
WHICH AN EMPLOYER SE EKING TO ENFORCE A N ONCOMPETE OR CONFLIC T OF 10
INTEREST PROVISION IN AN EMPLOYMENT CONTRACT OR A SIMILAR DOCUMENT OR 11
AGREEMENT CONCERNING AN EMPLOYEE: 12
1. FILES AN ACTION OR O THERWISE SEEKS JUDIC IAL 13
ENFORCEMENT OF THE PROVISION; 14
2. INITIATES ARBITRATIO N OR ANOTHER FORM OF 15
FORMAL DISPUTE RESOLUTION TO ENFORCE THE PROVISION; OR 16
3. DEMANDS IN WRITING THAT THE EMPLOYEE COMPLY 17
WITH THE PROVISION. 18
(III) “LICENSED ARCHITECT ” HAS THE MEANING STAT ED IN § 19
3–101 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE. 20
(IV) “PRINCIPAL PLACE OF BU SINESS” MEANS THE SINGLE 21
LOCATION FROM WHICH THE OFFICERS OF THE EMPLOYER DIRECT, CONTROL, AND 22
COORDINATE THE ACTIVITIES OF THE EMPLOYER. 23
(2) This subsection applies: 24
(i) to an employment contract or a similar document or agreement 25
concerning: 26
1. an employee who earns equal to or less than 150% of the 27
State minimum wage rate established under § 3–413 of this title; 28
2. employment in a position for which the employee: 29
HOUSE BILL 1016 3
A. is required to be licensed under the Health Occupations 1
Article; 2
B. is employed in a position that provides direct patient care; 3
and 4
C. earns equal to or less than $350,000 in total annual 5
compensation; 6
3. AN EMPLOYEE OF A LICENSED ARCHITECT WHO IS 7
EMPLOYED BY AN EMPLOYER THAT: 8
A. AT ANY TIME DURING ON THE FIRST DAY OF THE 9
EMPLOYEE’S EMPLOYMENT EMPLOYS MORE THAN 30 EMPLOYEES, THE MAJORITY 10
OF WHOM ARE LOCATED IN THE STATE REPORT TO A PRIMARY WORK SITE LOCATED 11
IN THE STATE OR PERFORM WORK REMOTELY FROM WITHIN THE STATE; AND 12
B. AT ANY TIME DURING O R SUBSEQ UENT TO THE 13
EMPLOYEE’S EMPLOYMENT, RELOCATES, REORGANIZES, OR OTHERWISE CEASES TO 14
ON THE ENFORCEMENT D ATE, DOES NOT HAVE THE MAJORITY OF ITS EMPLOYEES 15
REPORT TO A PRIMARY WORK SITE LOCATED IN THE STATE OR PERFORM WORK 16
REMOTELY FROM WITHIN THE STATE, OR DOES NOT HAVE ITS PRINCIPAL PLACE OF 17
BUSINESS LOCATED IN THE STATE; or 18
[3.] 4. an employee licensed as a veterinary practitioner or 19
veterinary technician under Title 2, Subtitle 3 of the Agriculture Article; and 20
(ii) whether or not the employer and employee entered into the 21
employment contract or similar document or agreement in the State. 22
(2) (3) This subsection does not apply to an employment contract or a 23
similar document or agreement with respect to the taking or use of a client or patient li st 24
or other proprietary client–related or patient–related information. 25
(3) (4) A noncompete or conflict of interest provision in an employment 26
contract or a similar document or agreement that restricts the ability of an employee to 27
enter into employmen t with a new employer or to become self –employed in the same or 28
similar business or trade shall be null and void as being against the public policy of the 29
State. 30
(b) (1) This subsection applies only to an employment contract or similar 31
document or agreement concerning employment in a position for which the employee: 32
(i) is required to be licensed under the Health Occupations Article; 33
4 HOUSE BILL 1016
(ii) is employed in a position that provides direct patient care; and 1
(iii) earns more than $350,000 in total annual compensation. 2
(2) (i) The period for which a noncompete or conflict of interest 3
provision in an employment contract or similar document or agreement is in effect may not 4
exceed 1 year from the last day of employment. 5
(ii) The geographical rest riction in a noncompete or conflict of 6
interest provision in an employment contract or similar document or agreement may not 7
exceed 10 miles from the primary place of employment. 8
(3) On request of a patient, an employer of an employee described in 9
paragraph (1) of this subsection shall provide notice to a patient of the new location where 10
a former employee will be practicing. 11
SECTION 2. AND BE IT FURTHER ENACTED, That § 3–716(a)(1)(i)3 of the Labor 12
and Employment Article, as enacted by Section 1 o f this Act, shall be construed to apply 13
only to employment contracts or similar documents or agreements for employment executed 14
on or after the effective date of this Act. 15
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
October 1, 2026. 17
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.