Non-compete laws · MD
Maryland physician non-compete law
As of October 21, 2026, Maryland law allows physician non-competes only within limits, including at most 10 miles and 12 months; a pay threshold also applies.
Allowed with physician-specific limitsChecked 2026-10-21
For licensed health care workers providing direct patient care (including physicians), noncompetes are void if total annual compensation is $350,000 or less; above that, limited to 1 year and 10 miles. Applies to agreements executed on/after July 1, 2025. (Md. Code, Lab. & Empl. § 3-716)
Changed recently. The current rule took effect 2025-07-01. Pages and guides written before then may describe the old rule.
Limits in the law
- Maximum distance
- 10 miles
- Maximum duration
- 12 months
- Pay threshold: $350,000 total annual compensation: void at or below; 1-year / 10-mile limits above
- Above-$350,000 tier: on a patient's request, the employer must tell the patient the former employee's new practice location
- Health care provisions apply only to agreements executed on or after July 1, 2025 (Ch. 378 of 2024, Section 3)
- Distance measured from the 'primary place of employment' (term not defined); 'total annual compensation' not defined
- Separately, noncompetes are void for any employee earning 150% of the State minimum wage or less
Who it covers
Employees required to be licensed under the Health Occupations Article who work in positions providing direct patient care (physicians, and also other licensed clinicians such as PAs, nurses/APRNs, dentists). Licensed veterinarians and veterinary technicians are separately covered by the full ban regardless of pay. Statute addresses employment contracts; owner/partner agreements are not expressly addressed.
Exceptions
- The void-provision subsection does not apply to provisions on taking or using client or patient lists or other proprietary client- or patient-related information
Effective date
The current rule took effect 2025-07-01.
Notes
Ch. 378 of 2024 (HB 1388); the health care provisions apply only to agreements executed on or after July 1, 2025. 'Total annual compensation' and 'primary place of employment' are not defined. A 2026 amendment (Ch. 301, architects) did not change the health care text.
Sources
- Md. Code, Lab. & Empl. § 3-716 (statute)
- 2024 Md. Laws Ch. 378 (HB 1388) (session-law)
- HB 1388 (2024 RS) bill page (bill)
- 2026 Md. Laws Ch. 301 (HB 1016) - architects amendment to § 3-716 (session-law)
- Becker's Hospital Review, Physician noncompete crackdown: A 50-state guide (Oct 2026) (secondary)
Questions to ask about your contract
- Is the radius measured from your practice site or from every location the employer owns?
- Does the restriction apply if the employer terminates you without cause?
- Is there a buyout, and how is the amount calculated?
- What does your state's law say about physician non-competes?
Not legal advice. This page summarizes the law as written. Whether a particular agreement is enforceable depends on its wording, when it was signed and court decisions. Ask an attorney licensed in Maryland.