Labor and Employment - Noncompete and Conflict of Interest Clauses - Employer Relocation

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1515*

HOUSE BILL 1515
K3 6lr3161

By: Delegates Adams, Anderson, Arentz, Baker, Beauchamp, Buckel, Hutchinson,
McComas, T. Morgan, Reilly, and Rose
Introduced and read first time: February 13, 2026
Assigned to: Government, Labor, and Elections

A BILL ENTITLED

AN ACT concerning 1

Labor and Employment – Noncompete and Conflict of Interest Clauses – 2
Employer Relocation 3

FOR the purpose of applying certain provisions of law establishing that certain noncompete 4
and conflict of interest provisions in certain employment contracts are null and void 5
as being against the public policy of the State to employees of certain employers that 6
relocate the majority of its employees or principal place of business outside the State; 7
and generally relating to noncompete and conflict of interest clauses in employment 8
contracts. 9

BY repealing and reenacting, with amendments, 10
Article – Labor and Employment 11
Section 3–716 12
Annotated Code of Maryland 13
(2025 Replacement Volume) 14

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16

Article – Labor and Employment 17

3–716. 18

(a) (1) This subsection applies: 19

(i) to an employment contract or a similar document or agreement 20
concerning: 21

1. an employee who earns equal to or less than 150% of the 22
State minimum wage rate established under § 3–413 of this title; 23
2 HOUSE BILL 1515

2. employment in a position for which the employee: 1

A. is required to be licensed under the Health Occupations 2
Article; 3

B. is employed in a position that provides direct patient care; 4
and 5

C. earns equal to or less than $350,000 in total annual 6
compensation; 7

3. AN EMPLOYEE OF AN EMPLOYER THAT: 8

A. AT ANY TIME DURING THE EMPLOYEE’S EMPLOYMENT 9
EMPLOYS MORE THAN 30 EMPLOYEES, THE MAJORITY OF WHOM ARE LOCATED IN 10
THE STATE; AND 11

B. SUBSEQUENT TO THE EM PLOYEE LEAVING THE 12
EMPLOYMENT OF THE EM PLOYER, RELOCATES THE MAJORITY OF IT S EMPLOYEES 13
OR ITS PRINCIPAL PLACE OF BUSINESS OUTSIDE THE STATE; or 14

[3.] 4. an employee licensed as a veterinary practitioner or 15
veterinary technician under Title 2, Subtitle 3 of the Agriculture Article; and 16

(ii) whether or not the employer and employee entered into the 17
employment contract or similar document or agreement in the State. 18

(2) This subsection does not apply to an employment contract or a similar 19
document or agreement with respect to the taking or use of a client or patient list or other 20
proprietary client–related or patient–related information. 21

(3) A noncompete or conflict of interest provision in an employment 22
contract or a similar document or agreement that restricts the ability of an employee to 23
enter into employment with a new employer or to become self –employed in the same or 24
similar business or trade shall be null and void as being against the public policy of the 25
State. 26

(b) (1) This subsection applies only to an employment contract or similar 27
document or agreement concerning employment in a position for which the employee: 28

(i) is required to be licensed under the Health Occupations Article; 29

(ii) is employed in a position that provides direct patient care; and 30

(iii) earns more than $350,000 in total annual compensation. 31
HOUSE BILL 1515 3

(2) (i) The period for which a noncompete or conflict of interest 1
provision in an employment contract or similar document or agreement is in effect may not 2
exceed 1 year from the last day of employment. 3

(ii) The geogra phical restriction in a noncompete or conflict of 4
interest provision in an employment contract or similar document or agreement may not 5
exceed 10 miles from the primary place of employment. 6

(3) On request of a patient, an employer of an employee describ ed in 7
paragraph (1) of this subsection shall provide notice to a patient of the new location where 8
a former employee will be practicing. 9

SECTION 2. AND BE IT FURTHER ENACTED, That § 3–716(a)(1)(i)3 of the Labor 10
and Employment Article, as enacted by Section 1 of this Act, shall be construed to apply 11
only to employment contracts or similar documents or agreements for employment executed 12
on or after the effective date of this Act. 13

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 14
October 1, 2026. 15