news & events

Non-Compete Laws in Maryland and Virginia: Changes are Fast Approaching

Posted April 21, 2025 at 2:14 PM

Business & Tax, Employment Law, News & Events

About a year ago, we published a blog on changes to non-compete laws in Maryland as applicable to certain health care practitioners.  You can find that article here, but as a quick reminder: restrictions on non-competition covenants go into effect in Maryland for agreements entered into with certain health care practitioners on or after July 1, 2025.

Maryland is not the only local jurisdiction taking action to limit the scope of non-competition covenants.  Virginia Senate Bill 1218, passed on March 24, 2025, broadens the scope of Virginia’s prohibition against covenants not to compete as found in Section 40.1-28.7:8 of the Virginia Code.  Previously, this section of the Virginia Code applied only to an employee whose average weekly earnings are less than the average weekly minimum wage in Virginia.  For contracts of employment entered into on or after July 1, 2025, the restrictions found in Section 40.1-28.7:8 also apply to any employee who is considered non-exempt under the Fair Labor Standards Act (regardless of wage). 

If your company is entering into an employment contract in Maryland or Virginia from and after July 1 of this year, you need to ensure that any restrictive covenants set forth therein meet the requirements of the sections referenced above.  Failure to do so could lead to civil penalties and other potential remedies in favor of the employee.

Please contact Miller, Miller & Canby should you have any question dealing with the upcoming changes in Maryland and Virginia non-compete laws.

Kevin D’Anna is a Principal at Miller, Miller & Canby and a member of the firm’s Business & Tax and Real Estate (finance) practice groups. Kevin regularly advises local and regional businesses of varying size and industry as a trusted outside counsel, providing legal advice on business formation, mergers, acquisitions or disposition, and complex business transactions. He may be reached at kkdanna@mmcanby.com.

Scott Mirsky is a principal in Miller, Miller & Canby’s Employment Law and Employment Litigation practice, with more than 20 years of experience representing individuals and businesses in diverse civil matters throughout the Washington, DC region. He has experience handling non-compete and trade secret disagreements, employment claims, issues concerning independent contractors, wage and overtime disputes under the FLSA and state law, and breach of contract claims. Learn more about his practice here or contact him directly at SAMirsky@mmcanby.com

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