Non-Solicitation Clauses in Maryland: Current Law
Maryland's Legal Landscape
Maryland has a notable statutory provision affecting restrictive covenants. Maryland Labor and Employment Code Section 3-716, effective October 2019, prohibits non-compete and conflict of interest provisions for employees earning $15 per hour or less (or $31,200 annually). While this law specifically targets non-competes, it signals Maryland's growing attention to restrictive covenant fairness.
For non-solicitation clauses, Maryland courts rely primarily on common law, with key cases like Padco Advisors, Inc. v. Omdahl and Becker v. Bailey establishing the framework.
Factors Maryland Courts Evaluate
- Legitimate business interest: The employer must demonstrate a genuine need to protect customer relationships, trade secrets, or proprietary information
- Reasonable scope: Non-solicitation restrictions must be limited to customers with whom the employee had direct dealings or access to confidential information about
- Reasonable duration: Courts have upheld one- to two-year restrictions as reasonable in most circumstances
- Adequate consideration: Maryland courts have accepted continued employment as sufficient consideration for restrictive covenants
- Balance of equities: Courts weigh the employer's need against the burden on the employee
Maryland Courts and Reformation
Maryland courts can apply the blue-pencil doctrine to sever or reform unreasonable provisions in a restrictive covenant. However, courts will not completely rewrite a fundamentally flawed agreement. The reformation must involve removing or narrowing specific provisions, not creating new terms.
Red Flags
- A non-solicitation clause imposed on a worker earning $15/hour or less (may be treated as a non-compete)
- Restrictions covering customers you had no relationship with
- Duration exceeding two years
- Vague definitions of solicitation that could capture incidental contact
- No consideration beyond initial employment for mid-term agreements
When to Consult a Lawyer
Consider reaching out to a Maryland employment attorney if you earn near the statutory threshold and are asked to sign a restrictive covenant, if you are unsure whether your agreement qualifies as a non-solicitation or a non-compete, or if your former employer is pursuing enforcement.
This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.