What is the salary threshold for non-compete in Maryland?

The Salary Threshold Increase(s) As of October 1, 2023, the salary threshold for non-competes increased to 150% of the state's minimum wage which is $19.88 per hour (the minimum wage of $13.25 per hour times 150%) or approximately $41,350 annually.

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Competition Noncompetition For 2023 In Maryland

Q: Are non-compete agreements banned in 2023?

Federal Trade Commission&#039;s Sweeping Final Rule to Ban Non-Competes: What You Need to Know. On April 23, 2024, the Federal Trade Commission (FTC) issued its final rule prohibiting all non-compete agreements for all employees at all levels, with only extremely limited exceptions.

Category:

Employment - Agreements - Confidentiality

State:

Multi-State

Control #:

US-00046

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Description

The Competition Noncompetition for 2023 in Maryland is a legal agreement designed to protect a company's confidential information and trade secrets while outlining the employee's obligations during and after employment. This form specifically includes definitions of key terms such as 'Confidential and Proprietary Information' and 'Inventions', which clarify the scope of confidential material and employee contributions to company innovations. Key features include a non-disclosure agreement, a two-year non-competition clause, and provisions related to the ownership of inventions. Filling out the form requires the company to include specific details about the employee, company name, and geographical limitations relevant to non-competition. Legal professionals including attorneys, partners, and associates can utilize this agreement to safeguard their businesses by preventing former employees from engaging with competitors or disclosing sensitive information. Paralegals and legal assistants may assist in the preparation and reviewing process to ensure legality and enforceability, while everyone involved should understand the implications of breaching the agreement which includes potential legal remedies. This document is essential for maintaining competitive advantage and protecting proprietary business interests in Maryland.

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FAQ

The Salary Threshold Increase(s) As of October 1, 2023, the salary threshold for non-competes increased to 150% of the state's minimum wage – which is $19.88 per hour (the minimum wage of $13.25 per hour times 150%) or approximately $41,350 annually.

Showing that the agreement is not related to a legitimate business interest is the most effective way of getting out of a non-compete contract. The goal of any non-compete agreement is to protect trade secrets.

Federal Trade Commission's Sweeping Final Rule to Ban Non-Competes: What You Need to Know. On April 23, 2024, the Federal Trade Commission (FTC) issued its final rule prohibiting all non-compete agreements for all employees at all levels, with only extremely limited exceptions.

If the non-compete agreement poses an undue hardship on the employee, Maryland courts may find it unenforceable. In conducting an undue hardship analysis, the court balances the legitimate business interests of the employer against the potential hardship the employee will experience.

This means that all current noncompetes under Maryland law will now be unenforceable except for those for senior executives, and no new noncompetes whatsoever may be entered into after September 4, 2024.

Add information about the parties involved. Describe the terms of the Non-Compete Agreement, such as the length and area of the restriction. If necessary, you can include a non-solicitation clause. Add a confidentiality clause.

The 2024 amendments to the law expand the ban on non-compete provisions to include agreements with: Licensed health care providers who provide direct patient care and earn total annual compensation equal to or less than $350,000; and. Employees who are licensed as a veterinarian or veterinary tech.

The restriction on noncompetes applies to any employee who earns equal to or less than 150% of the State minimum wage rate, and applies regardless of whether the employee entered into the agreement within the State of Maryland.