Maryland Non-Solicitation vs. Non-Compete Agreements: What’s the Difference?

Among the most confusing employment contract clauses are those that blur the line between freedom and limitation. For example, the differences between non-compete vs. non-solicitation agreements and how each one can shape your next career move. In a nutshell, both non-compete and non-solicitation agreements limit future actions.

However, a non-compete restricts working for competitors, while a non-solicitation clause prevents reaching out to clients or colleagues from your former employer. In Maryland, whether either type of agreement is enforced depends on its scope, reasonableness, and type of restriction.

At Smithey Law Group LLC, our Annapolis-based team focuses exclusively on labor and employment law. With attorneys serving on the Maryland State Bar Association’s Labor and Employment Section Council, authoring leading legal texts, and earning national recognition, our firm provides the authority you need to evaluate and challenge restrictive agreements.

What’s the Difference Between Non-Compete vs. Non-Solicitation Agreements in Maryland

Both agreements often appear in employment contracts. Here’s how their reach differs.

Non-Compete Agreements

A non-compete agreement limits an employee’s ability to work for a competitor or start a competing business after leaving their current job. Restrictions are usually framed by industry, geography, and time.

For example, a clause might prohibit a financial advisor in Baltimore from joining any competing firm in the region for a period of one year. Courts also require non-competes to protect a legitimate business interest, such as trade secrets or confidential customer lists.

Non-Solicitation Agreements

Non-solicitation agreements restrict an employee from contacting the employer’s clients, vendors, or coworkers to solicit business or staff for another employer. They do not usually prohibit working for a competitor outright, but they do limit how relationships built at the old job can be used at the new one.

For instance, a sales executive may join a rival company but cannot reach out to customers they serviced previously. Some non-solicitation clauses extend to recruiting colleagues, which can impact employees who launch startups.

Courts often view these agreements more favorably than non-competes, provided they are not drafted so broadly that they block all future contact with any client of the employer.

What Is Maryland Law on Non-Competes?

Maryland limits the reach of non-compete agreements, making non-competes unenforceable for employees earning equal to or less than 150% of the state minimum wage. As of January 1, 2025, that threshold is $22.50 per hour, or about $46,800 annually.

Even for higher earners, Maryland courts scrutinize non-competes for reasonableness. Key factors include:

• The geographic scope of the restriction,
• The duration of the ban, and
• The legitimate business interest the employer seeks to protect.

An agreement that prevents a software engineer from working anywhere in the United States for two years likely goes too far. However, a court may uphold a clause limiting work for direct competitors in the same city for six months.

What Is Maryland Law on Non-Solicitation Agreements?

Courts generally view non-solicitation clauses more favorably. Employers argue these agreements protect goodwill and client relationships rather than stifling career freedom. Still, the restrictions must be reasonable.

For example, valid non-solicitation clauses may:

• Bar former employees from calling on specific clients they served at the old job,
• Prohibit the targeted recruitment of the employer’s staff, or
• Preventing misuse of confidential client lists for competitive gain.

A non-solicitation agreement restriction often provides a narrower scope, which increases the likelihood of enforcement in Maryland courts. Yet, overbroad language, such as bans on all contact with any client of a large corporation, can still render an agreement vulnerable to challenge.

What Does Federal Law Say About Trade Secrets and Contracts?

Beyond state law, federal statutes influence the enforceability of agreements. The Defend Trade Secrets Act of 2016 provides employers with a federal cause of action for the misappropriation of confidential information. Many non-solicitation and non-compete agreements overlap with these protections.

The National Labor Relations Act (NLRA) also imposes restrictions. The National Labor Relations Board has scrutinized broad non-compete agreements that interfere with employees’ rights to seek new employment or organize.

This evolving landscape means agreements once considered standard now face new challenges under federal law.

Non-Solicitation Agreement vs. Non-Compete Agreement Practical Considerations in Maryland

When evaluating these agreements in your own employment contract, focus on what each clause truly restricts. For example:

• Career options. A non-compete may remove entire industries or regions from future job options.
• Client relationships. A non-solicitation clause targets who you can call on, but not where you can work.
• Colleague connections. Many non-solicitation provisions extend to coworkers, limiting recruitment of former team members.
• Future leverage. Overbroad or unreasonable restrictions may be challengeable in court, creating negotiation opportunities.

Understanding these restrictions helps employees weigh the risks before accepting new roles or starting a business.

What Common Mistakes Do Employees Make Reviewing Agreements in Maryland?

Common errors include:

• Signing contracts without reviewing restrictive covenants;
• Assuming all restrictions are enforceable when Maryland law may strike them down;
• Believing non-solicitation clauses only apply to direct sales positions;
• Ignoring the overlap with federal trade secret protections; and
• Overlooking how non-solicitation provisions can restrict recruiting former colleagues, not just contacting clients.

Avoiding these mistakes requires early review, careful analysis, and often, legal guidance.

Want to Understand the Difference Between Non-Solicitation Agreement Vs. Non-Compete Agreement Restrictions? Smithey Law Group LLC Can Help.

Agreements that limit future work require more than a glance. Employees deserve transparency before signing and protection in the event of disputes. At Smithey Law Group, our attorneys bring unmatched authority in this area. Our lawyers:

• Serve on the Labor and Employment Section Council and the Board of Governors of the Maryland State Bar Association;
• Author key texts such as the Maryland Rules Commentary and contribute to the Maryland Employment Law Deskbook;
• Appear in The New York Times, MSNBC, U.S. News and World Report, and other national outlets; and
• Earn recognition from Chambers Band 1 Rankings, Lawdragon, Super Lawyers, and Best Lawyers.

This collective knowledge and experience positions us as a leader in challenging, negotiating, and advising on restrictive covenants.

Understand and Protect Your Job Rights

If you are weighing a new job offer, leaving your current employer, or facing enforcement of an agreement, Smithey Law Group LLC stands ready to help.

With a focus solely on employment law, our firm works for you to understand your rights, the risks associated with them, and your options. Restrictive agreements may feel binding, but with the right counsel, you can take confident steps toward your future.

Serving Every Major Region and City in Maryland

At Smithey Law Group LLC, we represent employees and employers across every corner of Maryland. From the bustling commerce corridors of Central Maryland to the Eastern Shore, Southern Maryland, and Western Maryland, our experienced employment law attorneys understand the unique state statutes, local labor markets, and legal environments shaping workplace disputes.

• Central Maryland & Baltimore Metro: Baltimore City, Towson, Annapolis, Columbia, Ellicott City, Bel Air, Glen Burnie, Severna Park, Bowie, Laurel, Owings Mills, Catonsville, Dundalk
• Montgomery & Prince George’s Counties: Bethesda, Silver Spring, Rockville, Gaithersburg, Germantown, Potomac, Hyattsville, Upper Marlboro, College Park, Laurel, Greenbelt
• Western Maryland: Frederick, Hagerstown, Cumberland, Mount Airy, Westminster, Eldersburg, Frostburg
• Eastern Shore: Salisbury, Easton, Ocean City, Cambridge, Stevensville, Chestertown, Elkton
• Southern Maryland: Waldorf, La Plata, St. Charles, Prince Frederick, Lexington Park, Leonardtown

No matter where your employment law matter arises in Maryland — whether it involves a restrictive covenant in Bethesda, wage disputes in downtown Baltimore, wrongful termination in Frederick, or complex employment contracts in Annapolis — Smithey Law Group is prepared to protect your rights and advocate on your behalf.

Our primary office at 706 Giddings Ave #200, Annapolis, MD 21401 (along with additional locations in Baltimore, Bethesda, and Columbia) provides convenient access for clients across the state seeking premier legal representation for workplace and labor disputes.

Maryland Non-Compete Agreements FAQ

1. What is the main legal difference between a non-compete and a non-solicitation agreement in Maryland? A non-compete prevents a departing worker from joining a competing firm or starting a rival business altogether, whereas a non-solicitation clause only restricts contacting former clients, poaching coworkers, or using proprietary lists. When evaluating non compete agreements in maryland, state courts apply far higher scrutiny to non-competes because they limit overall gainful employment, while non-solicit clauses are typically easier to enforce.

2. Are non-compete agreements legally enforceable under Maryland law? Yes, but enforcement is strictly regulated. Courts require the employer to prove the clause is necessary to protect trade secrets or client goodwill, reasonable in geographic area and time limit, and not overly burdensome on the worker. Because enforcement standards continuously evolve, consulting a qualified maryland non-compete attorney is essential before signing or attempting to enforce these terms.

3. Does Maryland have a minimum income threshold for non-compete agreements? Yes. Maryland Code § 3-716 voids non compete agreements in maryland for employees earning equal to or less than 150% of the state minimum wage (currently $22.50 per hour or $46,800 annually; climbing to $49,920 annually when minimum wage reaches $16.00). Any non-compete required of employees below this income threshold is automatically null and void.

4. Does Maryland’s wage threshold limit apply to non-solicitation agreements? No. Maryland’s statutory wage threshold explicitly applies to non-competition clauses, not non-solicitation or confidentiality provisions. An employer can still enforce reasonable non-solicitation terms against workers regardless of their compensation level to prevent customer list theft and targeted poaching.

5. How long can a non-solicitation or non-compete clause legally last in Maryland? Courts generally view 6 months to 2 years as a reasonable duration for both types of clauses, though shorter windows (6 to 12 months) are upheld far more reliably. For specific fields, such as high-earning healthcare providers, state law caps non-competes at a strict 1-year maximum.

6. Are healthcare professionals in Maryland subject to non-competes? Maryland severely limits non-competes in healthcare. Direct patient-care providers earning $350,000 or less per year, as well as veterinary professionals, are completely exempt from non-competes. For healthcare workers earning over $350,000, non compete agreements in maryland are capped at 1 year and a 10-mile radius from their primary work location.

7. Can a non-solicitation clause stop me from accepting work if a former client reaches out to me first? It depends on how the agreement is drafted. Passive non-solicitation (allowing business if the client reaches out unprompted) is generally favored, but broad clauses prohibiting “servicing” or accepting business from former clients are regularly litigated. A maryland non-compete attorney can review the precise phrasing of your agreement to determine if passive contact is prohibited.

8. Can non-solicitation agreements prohibit me from recruiting former coworkers? Yes. Non-solicitation agreements frequently include anti-poaching or employee non-solicit provisions that prevent departing employees from recruiting former colleagues to join a new venture or competitor.

9. What happens if a Maryland non-compete or non-solicit clause is written too broadly? Maryland follows a modified “blue pencil” doctrine. Courts may strike out unreasonable terms (such as an excessive geographic radius) to leave a valid core intact, but judges will not rewrite or rewrite invalid contractual language for employers. If a non-compete is grossly overbroad, a judge may strike down the restriction in its entirety.

10. Should employers use non-solicitation agreements instead of non-competes in Maryland? In many cases, yes. Given the strict statutory bans and judicial resistance surrounding non compete agreements in maryland, many legal advisors recommend using tailored non-solicitation and non-disclosure clauses instead. These covenants offer robust protection for client lists and internal business assets with far less legal exposure.