Low-Wage Worker Noncompete Agreements Get Banned in Maryland

By The Law Offices of Ruben and Ruben

If you run a business, you need to know about how Maryland has changed its rules regarding non-compete agreements for “low-wage†employees.

Last month, it became prohibited for an employer to make an employee sign a non-compete agreement if that employee earned less than $15 an hour or $31,200 per year. Any preexisting non-compete agreements in the state are officially nullified and voided by the passing of SB 328.

You can still use employment contracts to prevent your employees from sharing or stealing your business’s proprietary information – intellectual property, trademarks, client lists, etc. The change merely allows low-wage employees to more easily find similar employment at your competitors. For example, if you run a coffee shop and a low-wage employee quits, then they can now apply to work at the coffee shop across the street without breaking any non-compete rules. A problem only arises if that employee shares your coffee shop’s trade secrets without your permission.

The legal change in Maryland is just one of many happening across the country. Illinois, Maine, Oregon, and a few others have already enacted a similar rule to ban non-compete agreements that restrict low-wage workers. Several other states are currently considering the option as well.

You can get more information about this ongoing story by clicking here and reading a full article from Forbes. If your business needs help drafting new employment contracts or updating your current ones to comply with this new legal change, call (240) 641-8572 and connect with The Law Offices of Ruben and Ruben. Our business law attorneys represent and provide counsel to all types of businesses across Maryland. We would be honored to help you, too.