Maryland enacts sweeping ban on noncompetes for all healthcare professionals
Maryland isn’t waiting for the Federal Trade Commission (FTC) ban on noncompete clauses to go into effect in September—the state is acting against the contracts by enacting its own law, specifically protecting healthcare workers, including veterinarians.
HB 1388 will expand Maryland's existing ban on noncompetes (currently limited to workers making low wages), broadening the rule to cover all healthcare professionals in the state to encourage “job mobility, higher wages” and the creation of new care organizations and practices within the state. The bill was signed by Governor Wes Moore in April.
The new law would also ban “conflict of interest” clauses—effectively anything that restricts “the ability of a healthcare professional to “enter into employment with a new employer or to become self-employed in the same or similar business or trade.”
The new protection is broad in scope, applying to nurses, radiology technologists, clinical technicians, doctors, veterinarians, dentists, pharmacists, psychiatrists, optometrists and more.
The protection would not apply to individuals earning single annual salaries of more than $350,000. However, noncompetes for those high-earners would be legally limited to one-year timeframes.
HB 1388 also impacts patients—if a patient is seeking to find their provider who has moved to a new practice or started their own, the previous employer must hand over available contact information.
The ban goes into effect fully on July 1, 2025. Veterinarian practitioners, however, will enjoy the protection beginning June 1, 2024. The new rule does not negate existing non-compete agreements, but they will become unenforceable after the law goes into effect.
The federal ban on noncompetes is expected to go into effect September 4. However, the FTC is facing numerous legal challenges that could delay implementation.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.