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Employment Law Update: Maryland Bans Noncompete Agreements for Veterinary and Healthcare Professionals

Date: May 30, 2024
In April, Maryland Governor Wes Moore signed a sweeping ban on noncompete and conflict of interest provisions for certain veterinary and healthcare professionals. For veterinary professionals, the law takes effect this weekend, on June 1, 2024. The ban for healthcare professionals becomes effective next year, on July 1, 2025.

For veterinary professionals, House Bill (HB) 1388 declares void all noncompete and conflict of interest provisions in employment contracts for veterinary practitioners and technicians under Title 2, Subtitle 3 of the Agriculture Article. Under the Agriculture Article, a “veterinary practitioner” is a licensed and registered veterinarian engaged in the practice of veterinary medicine, and a “veterinary technician” is a person who is registered with the State Board of Veterinary Medical Examiners as a veterinary technician. 

For healthcare professionals, the law will void noncompete and conflict of interest provisions for professionals who are required to be licensed under the Health Occupations Article, provide direct patient care, and earn $350,000 or less in total annual compensation. This is a broad ban, as the Health Occupations Article requires licenses for many healthcare professionals, including dentists, massage therapists, nurses, nursing home administrators, occupational therapists, optometrists, pharmacists, physical therapists, professional counselors and therapists, and social workers.

HB 1388 also imposes restrictions on noncompete and conflict of interest provisions for healthcare professionals earning more than $350,000 in total annual compensation (limiting such non-competes to a one-year time frame post termination and a 10-mile geographic restricted area).

Employers of veterinary professionals should review and revise employment contracts now.  Employers of healthcare professionals should keep an eye on the challenges to the Federal Trade Commission (FTC) Rule banning most noncompete agreements nationwide. Absent a stay in the FTC Rule’s effective date, most non-competes nationwide will be rendered unenforceable in September. We will continue to monitor and report on these developments. Please reach out to Whiteford’s Labor and Employment attorneys with any questions.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.