Maryland bans noncompetes for healthcare employees amid FTC decision

Maryland Gov. Wes Moore has signed a law prohibiting noncompetes for healthcare professionals April 25, according to an article by labor law firm Littler published in JDSupra

The move came on the same day the Federal Trade Commission banned noncompete clauses for most U.S. workers, though there are questions as to how it would apply to nonprofit organizations. The bill is expected to be enacted 120 days after signing, but groups such as the U.S. Chamber of Commerce are planning to sue the FTC, which could delay that timeline.

The Maryland law prohibits noncompetes for individuals who are required to be licensed under Maryland's Health Occupations Article — which includes physicians, physician assistants, nurse practitioners, nurses, dentists, pharmacists, psychologists and optometrists — are employed in a position that provides direct patient care and earn equal to or less than $350,000 a year. 

The law, which becomes effective for healthcare providers June 1, 2025, also limits the maximum allowable time and geographic scope of noncompetes for providers who earn more than $350,000 a year.

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