Noncompete and Conflict of Interest Clauses - Licensed Architects - Employer Workforce Relocation and Out-of-State Employers
HB 1016 invalidates noncompete and conflict-of-interest clauses in employment contracts for certain employees if their employer relocates the majority of its employees or principal business location outside Maryland. It directly affects low-wage workers (earning ≤150% of state minimum wage), healthcare workers providing direct patient care (earning ≤$350,000 annually), and veterinary professionals. For high-earning healthcare workers ($350,000+), the bill allows limited 1-year noncompete restrictions within 10 miles of their prior workplace. The law takes effect October 1, 2026, and applies only to contracts signed after that date.
Bill status
signed
all 5 stages cleared
Introduction
Feb 2026
Committee Review
Apr 2026
House of Delegates Passage
Apr 2026
Senate Passage
Apr 2026
Signed into Law
Apr 2026
Introduced Feb 6, 2026
Signed Apr 28, 2026
Maddy AI version diff · 2 comparisons
What changed between versions
Third - Labor and Employment - Noncompete and Conflict of Interest Clauses - Employer Workforce Relocation and Out-of-State Employers
→
Enrolled - Noncompete and Conflict of Interest Clauses - Licensed Architects - Employer Workforce Relocation and Out-of-State Employers
·
5 edits
·
Apr 28, 2026
MODERATE
The bill was enacted and formatted as an official enrolled law. The most significant policy change is the expansion of the bill's scope to include licensed architects, whereas the previous version only covered health care workers and veterinary staff. Additionally, the bill was updated to reflect the correct 2025 replacement volume for the Annotated Code of Maryland.
Scope change
The bill's applicability was expanded to include licensed architects employed by employers that relocate their workforce or move their principal place of business outside the state, in addition to the previously covered health care and veterinary professionals.
SCOPE
Added licensed architects to the list of professionals covered by noncompete and conflict of interest restrictions.
DEFINITION
Updated the definition of 'Licensed Architect' to reference the Business Occupations and Professions Article.
TECHNICAL
Corrected the citation to the Annotated Code of Maryland to the 2025 Replacement Volume.
Updated the bill title to reflect the inclusion of licensed architects.
Changed the document status from 'House Bill' to 'Enrolled Bill' and added standard proofreading and sealing language.
Floor votes · Senate Mar 24, 2026 · House of Delegates Mar 28, 2026
How they voted
42–0
Passed · 7 other
Total votes 49
Mar 24, 2026
D
Democratic36
86% Yea
R
Republican13
84% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
17
Key actions
11
Committee
6
Amendments
1
Apr 28, 2026
Signed into law
Approved by the Governor - Chapter 301
executive
Apr 11, 2026
Lower · Passed
Passed Enrolled
lower
Apr 11, 2026
Lower · Passed
Third Reading Passed
lower
Apr 11, 2026
Introduced
House Concurs Senate Amendments
lower
Apr 10, 2026
Upper · Passed
Third Reading Passed
upper
Apr 10, 2026
Upper · Passed
Favorable with Amendments {
upper
Apr 10, 2026
Upper · Passed
Favorable with Amendments Report by Finance
upper
Mar 28, 2026
House Of Delegates · Passed
House of Delegates Vote: pass (102-29-11)
house of delegates
Mar 24, 2026
Senate · Passed
Senate Vote: pass (42-0-7)
senate
Mar 23, 2026
Committee
Referred Finance
upper
Mar 21, 2026
Lower · Passed
Third Reading Passed
lower
Mar 20, 2026
Lower · Passed
Favorable with Amendments {
lower
Mar 20, 2026
Lower · Passed
Favorable with Amendments Report by Government, Labor, and Elections
lower
Feb 6, 2026
Committee
First Reading Government, Labor, and Elections
lower
5 primary · 0 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Andrew Pruski
DDemocratic
P
Jen Terrasa
DDemocratic
P
Mary Lehman
DDemocratic
P
Sheila Ruth
DDemocratic
P
Vaughn Stewart
DDemocratic
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