New Maryland Law Restricts Noncompetes in Medical and Veterinary Professions
It only makes sense that big businesses hire lawyers to review contracts that could enable them to gain millions of dollars or, if things go wrong, to lose millions of dollars; some have lawyers on staff whose duties consist mainly of drafting, reviewing, and modifying contracts. Even if yours is a small business with only a few employees, where everyone knows about all the operations of a business, you would still hire a lawyer before signing a contract that involves a major financial commitment. Employment contracts, on the other hand, seem like a routine matter. So many workers are employed on an at will basis, even in highly skilled and specialized occupations, that the fact that they have a contract at all seems like generosity on the employer’s part. Maryland has recently enacted a law that accords with a growing trend limiting the use of non-compete provisions in employment contracts. It could mean that, if your small business is in the healthcare or veterinary sector, you must amend your employees’ contracts. To make sure that your employees’ contracts comply with the current law, contact a Washington, D.C. small business lawyer.
You Can Stop Your Former Employees From Revealing Trade Secrets, but You Can’t Dictate Where They Can Work
In the context of employment law, a non-compete clause is a provision in an employment contract that prohibits an employee from engaging in activities that compete with the employer for a certain period of time after the employment relationship ends. These competing activities may include sharing trade secrets, soliciting clients of the former employer (which is sometimes known as poaching clients), setting up their own business in the same area that provides the same services as the former employer, or even working for a competitor of the former employer. Non-compete agreements can be free-standing agreements, but they often occur as provisions of employment contracts.
In the past few years, federal and state laws have aimed to curb the use of non-compete agreements that unfairly restrict a worker’s opportunities for seeking employment; at their worst, they are “you’ll never work in this town again” agreements. The current sentiment is that they are unfair except for the most highly paid workers in the most specialized jobs. Thus, Maryland HB 1388, which went into effect on June 1, 2024, prohibits non-compete clauses in employment contracts for veterinarians and veterinary technicians. The law also stipulates that, beginning in the summer of 2025, employees in the healthcare sector who provide direct patient care and whose annual salary is less than $350,000 cannot have non-compete clauses in their contracts. Thus, the law applies to physicians in clinical practice, nurses, mental health counselors, medical assistants, dentists, and dental hygienists, among others. It also limits the scope of non-compete agreements for healthcare employees who earn $350,000 or more per year.
Contact Tobin O’Connor Ewing About Employment Contracts
A Washington, D.C. small business attorney can help you revise your employees’ employment contracts if they include non-compete clauses. Contact Tobin, O’Connor, and Ewing in Washington, D.C. or call 202-362-5900.
Source:
mgaleg.maryland.gov/2024RS/Chapters_noln/CH_378_hb1388e.pdf
