Will Maryland Ban Noncompete Agreements for Healthcare and Veterinary Professionals

The Maryland General Assembly is considering a bill to ban noncompete agreements for licensed healthcare professionals.

House Bill 1388 and Senate Bill 1182 provide as follows:

A noncompete or conflict of interest provision 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 shall be null and void as being against the public policy of the State.

Shawe partner Fiona Ong, who chairs the Labor and Employment Committee for the Maryland Chamber of Commerce, reports that the is moving and will, if sent to the Governor’s desk, be signed into law.

As such, healthcare and veterinary practices that have concerns about a ban on these contract provisions would be wise to contact their representatives in the Senate and House to make their views known. Those whose representatives are on the House Health and Government Operations Committee or the Senate Finance Committee which are considering these bills may exert more influence in communicating their concerns.