Louisiana and Maryland have recently enacted restrictions on noncompete agreements with certain individuals and professions that will go into effect later this calendar year, and Iowa also passed legislation that recently went into effect.
Here’s what employers need to know.
Louisiana House Bill 315
On May 15, 2026, Louisiana Governor Jeff Landry signed House Bill 315 into law, enacted as Act No. 150 (the “Louisiana Act”). Effective August 1, 2026, the Louisiana Act amends Louisiana’s noncompete statute, R.S. 23:921, by adding subsection (P) that prohibits noncompete agreements with interns and apprentices, whether paid or unpaid, stating that that “there shall be no contract or agreement or provision entered into by an intern, whether paid or unpaid, or apprentice and his employer restraining the intern or apprentice from engaging in a business or an employment similar to that of the employer.” “Intern” is defined as a “student learner who participates in an internship authorized and regulated by Louisiana’s work-based learning program regulations (LAC 28:CXV.3113), or any successor regulations published by the Board of Elementary and Secondary Education.”
The Louisiana Act also prohibits contracts or agreements that restrict an intern or apprentice from pursuing employment, educational, or professional opportunities following the completion of the internship or apprenticeship. Agreements respecting confidentiality, intellectual property, and data protection remain enforceable as to interns and apprentices.
Maryland HB 1016
On April 28, 2026, Governor Wes Moore signed into law HB 1016 (the “Maryland Act”), which limits the enforcement of noncompetes for licensed architects in the State of Maryland. The Maryland Act renders noncompete clauses void and unenforceable for licensed architects if their employer relocates the majority of its workforce or its principal place of business outside of Maryland. The Maryland Act applies to all noncompete agreements executed after its October 1, 2026 effective date (the “Effective Date”).
The Maryland Act builds on Maryland’s existing noncompete statute (the “Maryland Noncompete Law”), which, as we reported on here and here, prohibits noncompetes between an employer and employee who (1) earns equal to or less than 150% of the State minimum wage, (2) is licensed under Maryland’s Health Occupations Article or is employed in a position that “provides direct patient care” and earns equal to or less than $350,000 per year, or (3) is a licensed veterinary practitioner or technician. The Act continues Maryland’s trend of restricting the use of noncompetes for specific professions.
Under the Maryland Act, noncompetes and conflict of interest provisions are prohibited against a licensed architect who is employed by an employer that: a) on the first day of the employee’s employment employs more than 30 employees, the majority of whom report to a primary work site located in Maryland or perform work remotely from within Maryland; and b) on the “enforcement date” (as defined below), does not have the majority of its employees report to a primary work site located in Maryland or perform work remotely from within Maryland, or does not have its principal place of business located in Maryland. In summary, the Maryland Act does not prohibit noncompetes for architects; it applies only when an employer that had a primary worksite in Maryland and more than 30 employees at the time of hire subsequently moves their principal place of business or the majority of their employees out of state.
The Maryland Act defines “enforcement date” as the earliest date on which an employer seeking to enforce a noncompete or conflict of interest provision: 1) files an action or otherwise seeks judicial enforcement of the provision; 2) initiates arbitration or another form of formal dispute resolution to enforce the provision; or 3) demands in writing that the employee comply with the provision.
Unlike prohibitions for other professionals in Maryland, the Maryland Act does not prohibit noncompetes for architects. It simply limits their enforcement if the employer relocates its workforce or its primary place of business outside the State of Maryland. Of course, any noncompetes with architects must comply with the other requirements of the Maryland Noncompete Law.
Iowa HF 2254
On June 2, 2026, Iowa Governor Kim Reynolds signed House File 2254 (“HF 2254”) into law, which went into effect on that date. The bill amends Iowa Code section 262.9 to prohibit the University of Iowa Hospitals and Clinics (“UIHC”) from including a noncompete clause in their employment contracts with certain healthcare professionals, immediately effective upon enactment.
HF 2254 requires the development of a policy prohibiting UIHC from including a noncompete clause in employment contracts with advanced registered nurse practitioners, licensed practical nurses, pharmacists, physicians, physician assistants, and registered nurses. The prohibition applies to all employment contracts between UIHC and these healthcare professionals that are entered, extended, or renewed on or after the effective date. The bill defines “noncompete clause” as any restriction on the right of these advanced professionals to practice in any geographic area or for a defined period upon the termination of their employment.
Employer Takeaways
The enactment into law of the Louisiana Act, Maryland Act, and HF 2254 presents a quintessential example of noncompete restrictions being considered across all jurisdictions. These laws highlight the need for employers with employees located in multiple states to diligently update agreements to ensure compliance with the ever-changing state landscape of restrictive covenant law.
Employers with employees located in multiple jurisdictions should review our 50-State Noncompete Survey, and consider working with counsel to draft a restrictive covenant agreement that complies with the law(s) applicable to their workforce.
Catherine White, a Summer Associate in Epstein Becker Green’s New York office (not admitted to practice) contributed to the preparation of this piece.
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The Trade Secrets & Employee Mobility blog is currently edited by David J. Clark and Daniel R. Levy.
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