Starting June 1, 2024, non-compete and conflict of interest contract provisions that limit future employment for licensed veterinary practitioners and technicians will be deemed null and void.
Effective for contracts signed after July 1, 2025, non-compete and conflict of interest provisions in employment agreements will also be banned for healthcare professionals earning $350,000.00 or less per year who are required to be licensed under the Health Occupations Article and provide direct patient care. For those healthcare professionals who earn more than $350,000 annually, non-compete restrictions may not exceed 1 year following the last day of employment and 10 miles from the employee’s primary place of employment. Additionally, for these high-earning professionals, the law mandates that on request of a patient, the former employer shall provide the patient notice of the new location where the former employee will be practicing.
The statute will be codified as Md. Code, Labor and Employment §3-716, applies to “…noncompete or conflict of interest provision[s] in an employment contract or a similar document or agreement that restricts the ability of an employee to enter into employment with a new employer or to become self-employed in the same or similar business or trade…”
This statute does not apply to provisions restricting the professional’s taking of client lists or proprietary information.
So what does this mean? If you are an employer operating in the veterinary space in Maryland, you will no longer be able to enforce a non-compete provision in your vets’ or technicians’ contracts after they leave you. If you are the employer of healthcare professionals, you have some time to determine the best way to proceed with non-competes.
However, in all cases, non-solicitation and confidentiality provisions may still be enforceable, assuming they are drafted correctly. If you need help determining whether an employment contract is still enforceable or how to best proceed without them, please feel free to contact us.
