Trapped by a Non-Compete? The Rules Just Changed in DC & Maryland
For decades, non-compete clauses were handed out like office supplies — to executives and sandwich makers alike — and most employees assumed they were stuck. Not anymore. While the FTC’s attempted nationwide ban was struck down in court and formally withdrawn in early 2026, the agency is still pursuing abusive non-competes case by case (it even maintains a public tip line, noncompete@ftc.gov). More importantly for our readers: DC and Maryland have each passed statutes that make many non-competes flatly void.
Washington, DC: A Near-Total Ban
Since October 2022, DC has banned non-compete provisions for most employees working in the District. Only “highly compensated” employees — earning at least $162,164 in 2026 ($270,274 for medical specialists) — can be bound at all, and even then, the restriction must spell out its scope and geography, last no more than 365 days after separation (730 for medical specialists), and be provided 14 days before you start work or sign, along with a required statutory notice. DC also sharply limits anti-moonlighting policies and prohibits retaliation against employees who refuse to sign an unlawful non-compete or ask about their rights. Violations carry administrative penalties and payments to affected employees.
Maryland: Wage-Based and Healthcare Protections
Maryland voids non-compete and conflict-of-interest provisions for employees earning 150% of the state minimum wage or less — currently $22.50 per hour (about $46,800 a year). Veterinarians and vet techs are protected outright, and since July 1, 2025, healthcare workers providing direct patient care cannot be bound at all if they earn $350,000 or less; above that, a non-compete is capped at one year and ten miles. Employers may still protect client lists and proprietary information — but they cannot stop covered workers from taking a competing job.
Not Covered by a Ban? You Still Have Defenses
Non-competes remain disfavored everywhere. Maryland and DC courts enforce them only when narrowly tailored to a legitimate interest — protecting trade secrets or customer goodwill, never protecting the employer from ordinary competition. Also, the geographical distance has to be reasonably narrowed so as to not preclude employment.
What Employees Should Do
Before signing, check whether the clause is even legal for someone at your pay level and classification — in this region, there’s a good chance it isn’t. When leaving a job, don’t assume the worst: the date you signed matters enormously, because these statutes generally apply to agreements entered into, renewed, or amended after their effective dates. Don’t turn down a better job — or comply with a scare letter — without having the covenant reviewed. Declaratory judgment actions, statutory damages claims, and agency complaints give employees real offensive options that didn’t exist five years ago.
The bottom line: the era of the routine non-compete is ending in DC and Maryland, and many employees are bound only on paper — by clauses a court would never enforce or a statute has already voided. If you’ve been asked to sign a non-compete, received a cease-and-desist letter, or are weighing a move to a competitor, The Employment Law Firm, LLC advises employees throughout DC and Maryland — contact us for a confidential consultation.