Maryland’s Non-Compete Restrictions for Healthcare and Veterinary Workers: What Employers Need to Know in 2026

Maryland’s restrictions on non-compete agreements for healthcare and veterinary professionals are now firmly in effect, and any employer in those industries that has not yet reviewed its restrictive covenants is operating with agreements that may be unenforceable, partially enforceable, or entirely void. The law took effect for veterinary practitioners and technicians on June 1, 2024, and for healthcare workers on July 1, 2025. As of 2026, both effective dates have passed, and any employer hiring under these categories should be drafting agreements that reflect the current rules rather than relying on templates from prior years. A Maryland business law attorney advising practice owners, hospital systems, and veterinary clinics in the current environment is mostly answering questions about what the law actually requires, what it does not change, and what compliance now looks like.

What HB 1388 Actually Did

The legislation, signed by Governor Wes Moore on April 25, 2024, is codified at Maryland Code Section 3-716. It builds on Maryland’s existing law banning non-competes for workers earning under 150% of the state minimum wage (currently around $46,800 annually) by adding two new categories of protected workers.

For veterinary practitioners and veterinary technicians licensed under Title 2, Subtitle 3 of the Agriculture Article, non-compete and conflict-of-interest provisions in employment agreements executed on or after June 1, 2024 are void. The ban is total. Veterinary employers cannot enforce post-employment non-competes regardless of the employee’s compensation level or role.

For healthcare workers licensed under the Maryland Health Occupations Article (a category that covers physicians, nurses, nurse practitioners, dentists, pharmacists, psychologists, optometrists, chiropractors, occupational therapists, physical therapists, audiologists, speech-language pathologists, and a long list of other licensed professionals), the rules are tiered.

Healthcare workers earning $350,000 or less in total annual compensation who provide direct patient care cannot be subject to non-compete or conflict-of-interest provisions in agreements executed on or after July 1, 2025. The ban is total at this compensation level.

Healthcare workers earning more than $350,000 in total annual compensation can be subject to non-competes, but only if the restricted period is no longer than one year and the geographic limitation is no greater than 10 miles from the worker’s primary place of employment. Anything broader is unenforceable.

What the Law Does Not Change

Several aspects of Maryland restrictive covenant practice remain available to employers, and understanding the carve-outs matters as much as understanding the prohibitions.

Pre-existing agreements remain enforceable. The law applies prospectively only. A non-compete signed by a veterinary practitioner in March 2024 or by a healthcare worker in June 2025 is governed by the law as it existed at the time of execution. Employers do not need to notify workers covered by pre-existing agreements that those agreements may not be replicable today.

Non-solicitation agreements remain legal. The statute applies to non-compete and conflict-of-interest provisions specifically. Provisions restricting a departing employee from soliciting the employer’s patients or clients are not affected, and they remain one of the most useful tools available to healthcare and veterinary practices for protecting goodwill.

Client list and proprietary information protections remain enforceable. The statute specifically exempts agreements that limit a former employee’s ability to take or use patient lists, client lists, or other proprietary patient-related or client-related information. A practice can still protect the underlying assets that make the patient base valuable.

Non-disclosure agreements remain available. Confidentiality provisions covering trade secrets, business processes, financial information, and similar materials are not affected by the statute and continue to function as the primary protection for non-public business information.

Healthcare workers above the $350,000 threshold remain subject to non-competes, with the time and geographic limitations described above. The law constrains rather than eliminates restrictive covenants for high-earning physicians and similar professionals.

The Patient Notification Requirement

One specific compliance obligation deserves attention. The statute requires employers to inform patients, on patient request, of the new location where a departed practitioner is practicing. This is not a proactive notification requirement, but the practice has to be prepared to respond appropriately when patients ask. Procedures for handling these requests, including how front-desk staff respond to patient inquiries about a departed physician or veterinarian, are part of the compliance posture the law expects.

What Employers Should Be Doing Now

A Maryland business law attorney working with healthcare and veterinary employers in 2026 typically recommends a specific compliance sequence.

Audit existing form employment agreements and template offer letters. Any template last updated before mid-2024 likely contains non-compete language that is now unenforceable for veterinary hires, and any template last updated before mid-2025 likely contains language that is unenforceable for most healthcare hires.

Replace non-compete provisions with the protections that remain available. Strong non-solicit provisions covering patients, clients, and referral sources. Client list and proprietary information clauses with specific definitions. Non-disclosure provisions covering trade secrets and business operations. Tail-period restrictions that comply with the time and geographic limitations for higher-earning healthcare workers.

Consider compensation structure for healthcare hires near the $350,000 threshold. The compensation level is calculated on total annual compensation, which includes salary, bonus, and other compensation. Practices that want to preserve the option of enforceable non-competes for specific hires should structure offers carefully and document the compensation calculation.

Update internal procedures for patient inquiries about departed practitioners. Front-desk training, documentation of patient requests, and consistent responses across the practice all matter for compliance with the patient notification requirement.

Plan for non-Maryland employees and multi-state operations. Healthcare and veterinary employers with operations in Virginia, D.C., Pennsylvania, or Delaware face different rules in each jurisdiction, and the agreement that complies in Maryland may not be the right agreement for an employee primarily working elsewhere.

Working with a Maryland business law attorney such as those at The Mundaca Law Firm, with offices in Annapolis and Washington D.C., during this transition typically produces template agreements that comply with Section 3-716 while preserving the protections that remain available.

The Short Version

Maryland’s restrictions on non-compete agreements for veterinary professionals (effective June 2024) and healthcare workers (effective July 2025) are now in force, and agreements executed under prior templates need updating. Non-solicits, client list protections, and non-disclosure provisions remain available, as do non-competes for healthcare workers earning over $350,000 within the one-year and ten-mile constraints. For employers reviewing their compliance posture in 2026, a Maryland business law attorney can audit existing agreements, replace prohibited provisions with the protections that remain enforceable, and document the compliance procedures the law requires.