Maryland employers who wish to require their employees to sign a non-competition agreement beware. Effective October 1, 2019, non-competition agreements under Maryland law are valid only if the employee earns more than $15/hour or $31,200 annually. (See SB 328.) For employees who earn equal to or less than that, the agreement will be considered in violation of public policy and consequently, void.
The new Maryland law is not unique. In June, 2019, Maine enacted lawmaking non-competition agreements unenforceable for any employee earning less than 400% of the federal poverty line – nearly $50,000 in 2019. Similarly, in July, 2019, New Hampshire enacted the same restriction for employees that make equal or less than double the federal minimum wage ($14.50/hour).