By Greg Care

A new legislative proposal could add to the limits Maryland law places on non-competition clauses (or, “non-competes,” as they are commonly known).

Non-competes are contractually-binding promises by a worker not to work for or own a business that is engaged in essentially the same work they do for their present employer for some period of time after the employment relationship ends and in a prescribed geographic area.

This is a frequent topic of discussion in my blogs, because there have been so many regulatory, legislative, and litigation developments around this hot-button issue. Those who have followed my prior posts are familiar with the Federal Trade Commission’s short-lived regulation that would have almost entirely banned non-competes nationwide and the Maryland General Assembly’s 2024 law that outlawed non-competes for veterinarians and patient-facing medical professionals earning $350,000 or less annually.

Over and again, these developments teach that much of the progress on this issue occurs at the state and local levels. So, it is worth noting a new proposal, SB 900 and its House cross-file (HB 1016), that, if passed, would place new limits on non-competes.

The “first reading,” or initial draft, of these identical bills, sponsored by Senator Justin Ready (R) and Delegate Andrew C. Pruski (D), respectively, would prevent moderate to large employers that relocate themselves or a majority of their employees outside of Maryland from enforcing a non-compete. Specifically, the proposal is targeted at an employer that:

(a) “at any time during the employee’s employment employs more than 30 employees, the majority of whom are located in the state; and”

(b) “at any time during or subsequent to the employee’s employment, relocates, reorganizes, or otherwise ceases to have the majority of its employees or its principal place of business located in the state.”

The House bill will be heard by the Government, Labor, and Elections Committee on February 19, 2026, and the Senate bill will be heard by the Finance Committee on March 11, 2026. Stay tuned for updates.

If you have questions regarding non-competes in your situation, please contact us today to see if we can assist with your particular circumstances.

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