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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
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*sb0900*
SENATE BILL 900
K3 6lr1729
CF HB 1016
By: Senator Ready
Introduced and read first time: February 6, 2026
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 23, 2026
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 8
the State or have its principal place of business outside the State; and generally 9
relating 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
Annotated Code of Maryland 14
(2025 Replacement Volume) 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Labor and Employment 18
3–716. 19
2 SENATE BILL 900
(a) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE 1
MEANINGS INDICATED. 2
(II) “ENFORCEMENT DATE ” MEANS THE EARLIEST D ATE ON 3
WHICH AN EMPLOYER SE EKING TO ENFORCE A N ONCOMPETE OR CONFLIC T OF 4
INTEREST PROVISION IN AN EMPLOYMENT CONTRACT OR A SIMILAR DOCUMENT OR 5
AGREEMENT CONCERNING AN EMPLOYEE: 6
1. FILES AN ACTI ON OR OTHERWISE SEEK S JUDICIAL 7
ENFORCEMENT OF THE PROVISION; 8
2. INITIATES ARBITRATIO N OR ANOTHER FORM OF 9
FORMAL DISPUTE RESOLUTION TO ENFORCE THE PROVISION; OR 10
3. DEMANDS IN WRITING THAT THE EMPLOYEE COMPLY 11
WITH THE PROVISION. 12
(III) “LICENSED ARCHITECT” HAS THE MEANING STAT ED IN § 13
3–101 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE. 14
(IV) “PRINCIPAL PLACE OF BU SINESS” MEANS THE SINGLE 15
LOCATION FROM WHICH THE OFFICERS OF THE EMPLOYER DIRECT, CONTROL, AND 16
COORDINATE THE ACTIVITIES OF THE EMPLOYER. 17
(2) This subsection applies: 18
(i) to an employment contract or a similar document or agreement 19
concerning: 20
1. an employee who earns equal to or less than 150% of the 21
State minimum wage rate established under § 3–413 of this title; 22
2. employment in a position for which the employee: 23
A. is required to be licensed under the Health Occupations 24
Article; 25
B. is employed in a position that provides direct patient care; 26
and 27
C. earns equal to or less than $350,000 in total annual 28
compensation; 29
3. AN EMPLOYEE OF A LICENSED ARCHITECT WHO IS 30
EMPLOYED BY AN EMPLOYER THAT: 31
SENATE BILL 900 3
A. AT ANY TIME DURING ON THE FIRST DAY OF THE 1
EMPLOYEE’S EMPLOYMENT EMPLOYS MORE THAN 30 EMPLOYEES, THE MAJORITY 2
OF WHOM ARE LOCATED IN THE STATE REPORT TO A PRIMARY WORK SITE LOCATED 3
IN THE STATE OR PERFORM WORK REMOTELY FROM WITHIN THE STATE; AND 4
B. AT ANY TIME DURING O R SUBSEQUENT TO THE 5
EMPLOYEE’S EMPLOYMENT, RELOCATES, REORGANIZES, OR OTHERWISE CEASES TO 6
ON THE ENFORCEMENT D ATE, DOES NOT HAVE THE MAJORITY OF ITS EMPLOYEES 7
REPORT TO A PRIMARY WORK SITE LOCATED IN THE STATE OR PERFORM WORK 8
REMOTELY FROM WITHIN THE STATE, OR DOES NOT HAVE ITS PRINCIPAL PLACE OF 9
BUSINESS LOCATED IN THE STATE; or 10
[3.] 4. an employee licensed as a veterinary practitioner or 11
veterinary technician under Title 2, Subtitle 3 of the Agriculture Article; and 12
(ii) whether or not the employer and employee entered into the 13
employment contract or similar document or agreement in the State. 14
(2) (3) This subsection does not apply to an employment contract or a 15
similar document or agreement with respect to the taking or use of a client or patient list 16
or other proprietary client–related or patient–related information. 17
(3) (4) A noncompete or conflict of interest provision in an employment 18
contract or a similar document or agreement that restricts the ability of an employee to 19
enter into employment with a new employer or to become self –employed in the same or 20
similar business or trade shall be null and void as bei ng against the public policy of the 21
State. 22
(b) (1) This subsection applies only to an employment contract or similar 23
document or agreement concerning employment in a position for which the employee: 24
(i) is required to be licensed under the Health Occupations Article; 25
(ii) is employed in a position that provides direct patient care; and 26
(iii) earns more than $350,000 in total annual compensation. 27
(2) (i) The period for which a noncompete or conflict of interest 28
provision in an employment contract or similar document or agreement is in effect may not 29
exceed 1 year from the last day of employment. 30
(ii) The geographical restriction in a noncompete or conflict of 31
interest provision in an employment contract or similar document or agreement may not 32
exceed 10 miles from the primary place of employment. 33
4 SENATE BILL 900
(3) On request of a patient, an employer of an employee described in 1
paragraph (1) of this subsection shall provide notice to a patient of the new location where 2
a former employee will be practicing. 3
SECTION 2. AND BE IT FURTHER ENACTED, That § 3–716(a)(1)(i)3 of the Labor 4
and Employment Article, as enacted by Section 1 of this Act, shall be construed to apply 5
only to employment contracts or similar documents or agreements for employment executed 6
on or after the effective date of this Act. 7
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
October 1, 2026. 9
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.