Maryland Non-Compete Agreement Template
Reviewed by the Agiled editorial teamUpdated June 2026
Non-compete law is the most state-divergent area in employment contracting — four states ban these agreements outright, a dozen more impose salary floors or notice rules, and the rest apply judge-made reasonableness tests that differ in temperament. This page covers what Maryland requires; the download is our standard non-compete template, to be scoped to Maryland's rules below.
Maryland non-compete rules at a glance
| Enforceability | Enforceable above wage floors; expanding health-care limits (Md. Code, Lab. & Empl. §3-716). |
|---|---|
| Protected workers / thresholds | Void at ≤150% of state minimum wage; veterinary and health-care thresholds added 2024–25 |
| Required formalities | No statutory notice or salary threshold; consideration and reasonableness rules come from case law. |
| Overbroad agreements | Courts may blue-pencil overbroad covenants |
State laws change frequently and this summary is not legal advice. Verify current rules against the state statute or with a licensed attorney before relying on them.
How Maryland handles non-compete agreements
Maryland indexes its floor to the minimum wage and is methodically extending bans through the health professions — the protected band grows automatically every time the wage rises. The practical drafting rule for Maryland: enforceable above wage floors; expanding health-care limits (Md. Code, Lab. & Empl. §3-716).. Before using this template, confirm the current statute — non-compete law has changed in more than a dozen states since 2020, and the FTC's federal ban attempt keeps the area moving.
Maryland non-compete agreement FAQs
Are non-compete agreements enforceable in Maryland?
Enforceable above wage floors; expanding health-care limits (Md. Code, Lab. & Empl. §3-716). Coverage limits matter here: void at ≤150% of state minimum wage; veterinary and health-care thresholds added 2024–25.
What happens to an overbroad non-compete in Maryland?
Courts may blue-pencil overbroad covenants Draft to the narrowest restriction that protects the actual business interest — the safety net (or lack of one) above is what you're betting on.
What formalities does a Maryland non-compete require?
No statutory notice or salary threshold; consideration and reasonableness rules come from case law. Procedural failures are now the most common way non-competes die — more common than substantive overbreadth in states with notice rules.
Does the FTC non-compete ban apply in Maryland?
The FTC's 2024 rule banning most non-competes was set aside by a federal court before taking effect and remains in litigation, so it is not currently in force in Maryland or any state. State law controls — which is why the state-specific rules above are the ones to draft around.
The full non-compete agreement guide
Clause-by-clause guidance, common mistakes, and the complete template text live on the main page: Non-Compete Agreement Template — full guide and download.