§ 26 §599-A — Noncompete agreements

Maine § 26 §599-A

• Jurisdiction: Maine
• Title 26: LABOR AND INDUSTRY
• Ch. 7: EMPLOYMENT PRACTICES

Text

1.
Definitions.
As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
2.
Public policy; enforceability of noncompete agreements.
Noncompete agreements are contrary to public policy and are enforceable only to the extent that they are reasonable and are no broader than necessary to protect one or more of the following legitimate business interests of the employer:
3.
Prohibited for certain workers.
Notwithstanding subsection 2, an employer may not require or permit an employee to enter into a noncompete agreement with the employer if:
4.
Disclosure; notice.
An employer shall disclose prior to an offer of employment with the employer that will require the acceptance of a noncompete agreement a statement that a noncompete agreement will be required.
5.
Effective date of a noncompete agreement.
Except for a noncompete agreement between an employer and an allopathic physician or an osteopathic physician licensed under Title 32, chapter 48 or chapter 36, respectively, the terms of a noncompete agreement do not take effect until after one year of the employee's employment with the employer or a period of 6 months from the date the agreement was signed, whichever is later.
6.
Penalty; enforcement.
An employer that violates subsection 3 or 4 commits a civil violation for which a fine of not less than $5,000 may be adjudged. The Department of Labor is responsible for enforcement of this section.
7.
Application.
This section applies to all noncompete agreements entered into or renewed after the effective date of this section.

Legislative History

PL 2019, c. 513, §1 (NEW). PL 2023, c. 118, §1 (AMD).