In the last two years, Maryland, Virginia, and D.C. have passed laws restricting employers’ use of non-compete agreements in employment contracts. Over the past several years, courts have also trended away from enforcing non-compete restrictions unless they are reasonably written to protect a company’s business interests.
Effective October 1, 2019, Maryland’s Non-Compete and Conflict of Interest Clause Act prohibits non-compete clauses for “low-wage” employees, employees who earn an amount equal to or less than $31,200 annually or $15.00 per hour. The law does not apply to agreements regarding the taking or use of a client list or other proprietary client-related information; therefore, non-disclosure agreements protecting employer proprietary client information are still enforceable against these low-wage workers.
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