Maryland HB 506: Labor and Employment - Noncompete and Conflict of Interest Clauses

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW. 
        [Brackets] indicate matter deleted from existing law. 
           *hb0506*   
  
HOUSE BILL 506 
K3   7lr1200 
HB 1440/16 – ECM   CF 7lr3296 
By: Delegates Carr, Fennell, Glenn, Hornberger, and Jameson 
Introduced and read first time: January 27, 2017 
Assigned to: Economic Matters 
 
A BILL ENTITLED 
 
AN ACT concerning 1 
 
Labor and Employment – Noncompete and Conflict of Interest Clauses 2 
 
FOR the purpose of providing that certain noncompete and conflict of interest provisions 3 
are  null  and  void as being  against  the  public  policy  of  the  State;  providing  for  the 4 
application of this Act; and generally relating to noncompete and conflict of interest 5 
clauses in employment. 6 
 
BY adding to 7 
 Article – Labor and Employment 8 
Section 3–715 9 
 Annotated Code of Maryland 10 
 (2016 Replacement Volume) 11 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12 
That the Laws of Maryland read as follows: 13 
 
Article – Labor and Employment 14 
 
3–715. 15 
 
 (A) THIS SECTION APPLIES: 16 
 
  (1) TO  AN  EMPLOYMENT  CONTRACT  OR  A SIMILAR  DOCUMENT  OR 17 
AGREEMENT CONCERNING AN EMPLOYEE WHO EARNS EQUAL TO OR LESS THAN: 18 
 
   (I) $15 PER HOUR; OR 19 
 
   (II) $31,200 ANNUALLY; AND 20 
 

2 HOUSE BILL 506  
 
 
  (2) WHETHER OR NOT THE EMPLOYER AND EMPLOYEE ENTERED INTO 1 
THE  EMPLOYMENT  CONTRACT  OR  SIMILAR  DOCUMENT  OR  AGREEMENT  IN  THE 2 
STATE. 3 
 
 (B) A NONCOMPETE   OR   CONFLICT   OF   INTEREST   PROVISION   IN   AN 4 
EMPLOYMENT   CONTRACT OR   A   SIMILAR   DOCUMENT   OR   AGREEMENT   THAT 5 
RESTRICTS  THE  ABILITY  OF  AN  EMPLOYEE  TO ENTER  INTO  EMPLOYMENT  WITH  A 6 
NEW   EMPLOYER   OR   TO   BECOME   SELF–EMPLOYED   IN   THE   SAME   OR   SIMILAR 7 
BUSINESS  OR  TRADE  SHALL  BE  NULL  AND  VOID AS  BEING  AGAINST  THE PUBLIC 8 
POLICY OF THE STATE. 9 
 
 SECTION  2.  AND  BE  IT  FURTHER  ENACTED,  That  this  Act  shall  take effect 10 
October 1, 2017. 11