Don't ignore your noncompete—yet (2026 Update)

Updated: March 2026

(Originally published April 24, 2024)

Maryland Noncompete Agreements: 2026 Update

When the Federal Trade Commission (FTC) announced its sweeping ban on noncompete agreements in 2024, workers across the country celebrated. But that celebration was short-lived.

If you’re wondering whether your noncompete agreement is still enforceable, you’re not alone. As of 2026, noncompete agreements are still enforceable in Maryland in many situations.

Here’s what’s happening and what it means for you.

The FTC Noncompete Ban:

On April 23, 2024, the FTC issued a final rule banning most noncompete agreements nationwide. The rule was set to take effect 120 days after publication in the Federal Register, around September 2024.

However, just weeks later, the U.S. Chamber of Commerce, along with several business groups, sued the FTC in federal court, arguing that the agency lacked authority to impose the ban.

In August 2024, a Texas federal judge vacated the rule entirely, halting it nationwide. The FTC appealed, but in July 2025, the Fifth Circuit Court of Appeals stayed the appeal proceedings through at least September 2025 while the new FTC leadership reviewed whether to continue defending the rule. On September 5, 2025, the FTC voluntarily dismissed its appeal.

In other words, the FTC’s nationwide noncompete ban is no longer being pursued.

Can Employers Still Enforce Noncompetes?

Existing noncompete agreements remain governed by state law.

Maryland already has its own limits on noncompetes. Since 2019, under Md. Code, Lab. & Empl. § 3-716, employers cannot enforce noncompete or conflict-of-interest clauses against “low-wage” employees, defined as those earning $15/hour or less (or $31,200 per year).

Outside that threshold, noncompetes are not automatically illegal, but they must be reasonable in scope and duration—and narrowly tailored to protect a legitimate business interest (like trade secrets or customer relationships). Maryland courts generally strike down overbroad restrictions that prevent employees from finding comparable work.

What This Means for Maryland Workers

Continue to comply with your noncompete (or contact us if you think your noncompete may be unenforceable). Also, if you are a "senior executive," you should know that the FTC's noncompete ban won't apply to your existing noncompete. The final rule defines a senior executive as a worker:

• in a policy-making position; and,

• earning at least $151,164 in the last year (or annualized, if you've only worked a partial year).

Bottom Line

• If you have a noncompete, don’t assume it’s void. Until the FTC’s rule is reinstated (if ever), enforceability depends on Maryland law and the specific terms of your contract.

  
  

• You may have options. If your employer tries to enforce a noncompete that’s overly broad or applies to a low-wage position, it may be unenforceable under Maryland’s statute or case law.

  
  

• Don’t quit or sign anything without getting legal advice first. Employers sometimes use noncompetes to intimidate workers even when the agreements wouldn’t hold up in court.

Maryland employees should continue to treat noncompetes as enforceable unless reviewed and invalidated by a court.

If you’re unsure whether your agreement can be enforced, get legal advice before making your next move.

The Employment Law Center of Maryland, along with the National Employment Lawyers Association, strongly supports a federal noncompete ban. Noncompetes exploit workers, prevent competition, and limit innovation. And while the "ban on noncompetes" you're seeing in the headlines isn't real yet, it does represent something important—a step in the right direction.

If you're a Maryland worker with a noncompete issue, we're here to help. Contact us today.

This blog post was first published by Executive Director and General Counsel Joseph Gibson, Esq., on April 24, 2024.

This blog post was updated by ELC Attorney Bethany Callahan, Esq., on March 23, 2026.