Earlier this year, we updated all of the new noncompete low-wage thresholds and criteria for 2023.
As predicted, Maryland will be updating its low-wage threshold.
Effective October 1, 2023, the $31,200 annual threshold will be eliminated and the hourly rates will be replaced with a 150 percent of the minimum wage standard.
For 2023 (after October 1), that means the thresholds will be $19.88 per hour ($13.25/hour x 1.5) generally, and $19.20 per hour ($12.80/hour x 1.5) for small employers (i.e., those employing 14 or few employees). The thresholds will then increase (as set out in the statute) until each reaches $22.50 ($15/hour x 1.5). The increases will start in 2024, and will increase to $21/hour ($14/hour x 1.5) generally and $20.10 ($13.40/hour x 1.5) for small employers.
To help make sense of it, here is an easy-to-reference summary chart:
Wage Criteria (2023)
|Maine||400% of the federal poverty level ($58,320 (est.))|
|Maryland||$15 per hour or $31,200 annually (effective October 1, 2023: $19.88 per hour generally and $19.20 per hour for small employers (150% of state minimum wage))|
|Massachusetts||Nonexempt under the Fair Labor Standards Act|
|Nevada||Paid solely on an hourly wage basis, exclusive of tips or gratuities|
|New Hampshire||$14.50 per hour (2x federal minimum wage) or tipped minimum wage, whichever applies|
|Rhode Island||250% of the federal poverty level for individuals ($36,450 (est.)) or nonexempt under the Fair Labor Standards Act|
|Virginia||Average weekly wage ($1,343) in Virginia ($69,836 (est.))|
|Washington||$116,593.18 ($291,482.95 for independent contractors)|
$150,000 ($250,000 for medical specialists)
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Separately, we are awaiting Minnesota’s Governor Tim Walz to sign a ban on all employee noncompetes, which would make Minnesota the fourth state with a noncompete ban. Stay tuned!
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Resources to help
We know first hand how hard it is to keep up with the ever-changing requirements around the country. To help, we have created the following resources (available for free):
- 50-State Noncompete Law Chart, the first of its kind and regularly updated (downloadable PDF);
- Chart of Noncompete “Low Wage” Thresholds and Criteria (downloadable);
- Notice requirements summary chart, providing details for each of the 8 states (plus D.C.) that has notice requirements related to noncompetes (downloadable PDF);
- “Changing Trade Secrets | Noncompete Laws” (dedicated blog page) now provides a current detailed summary of the changing landscape of trade secret laws and noncompete laws around the country, state by state and at the federal level;
- Trade secret and other legitimate business interest protection plan strategy and checklist; and
- Ten Minute Trade Secret Training Series, currently with three training videos and one “basics” video:
We also have a 50-State and Federal Trade Secret Law Chart, providing a comparison of the trade secrets laws nationally to the Uniform Trade Secrets Act (downloadable PDF).
We hope you find all of these resources useful.