Maryland: Noncompete Clauses Banned for Low Wage Workers

As a matter of public policy, SB 328 prohibits employers from including noncompete and conflict of interest provisions in employment contracts for employees earning less than $15 per hour, or $31,200 annually. If a noncompete or conflict of interest provision is found in an employment contract and restricts entry into employment with another employer, or restricts the employee from becoming self-employed in the same or similar business or trade, it shall be deemed null and void.

The bill applies to Maryland employees regardless of whether the contract was executed inside or outside of the State. The new legislation does not apply to employment contracts restricting the use of client lists or other proprietary client-related information.

Action Items

1. Review the text of the bill here.
2. Have noncompete and conflict of interest clauses reviewed by legal counsel for compliance with this new law.
3. Subscribers can call our HR Hotline at (833) 268-5531 or send an email to hrsolved@onedigital.com for further assistance.

The statements made herein are intended for HR. Solved.^SM program subscribers, are informational only, are not legal advice, and no attorney-client privilege is created by OneDigital. OneDigital makes no express or implied representations or warranties arising by law or otherwise, all of which are expressly disclaimed.

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