Non-Compete Agreements in Maine: 2019 Law and Beyond
Maine's 2019 Non-Compete Reforms
Maine enacted significant restrictions on non-compete agreements with 26 M.R.S. Section 599-A, effective September 2019. The law added employee protections that go beyond common law reasonableness requirements.
Key Statutory Protections
Under Maine's law:
- Notice requirement: Employers must provide notice of the non-compete to the employee at least three business days before the employee accepts the position. Failure to provide timely notice renders the agreement unenforceable.
- No non-competes for low-wage workers: Agreements are unenforceable against employees earning at or below 400% of the federal poverty level.
- One-year maximum: Non-compete agreements cannot exceed one year in duration.
- Garden leave or consideration: For agreements signed after the start of employment, the employer must provide additional consideration.
The Reasonableness Standard
Beyond the statutory requirements, Maine courts still apply a common law reasonableness analysis:
- The restriction must protect a legitimate business interest
- It must be reasonable in geographic scope relative to the employer's business area
- It must not be unduly burdensome on the employee
- It must serve a purpose beyond merely preventing competition
Notice Requirement Details
The three-business-day advance notice requirement is a critical compliance point. The non-compete must be provided as a written document separate from other employment paperwork, and the employee must have the opportunity to review it before accepting the job. Non-competes presented on the first day of work or buried in an onboarding packet may not satisfy this requirement.
Red Flags
- Non-compete presented after the employee accepted the position or on the first day
- Duration exceeding one year
- Applied to employees earning at or below the low-wage threshold
- No additional consideration for mid-employment agreements
- Overly broad geographic or activity restrictions
When to Consult a Lawyer
Consider seeking legal advice from a Maine employment attorney if you were not given advance notice of the non-compete, if you earn below the statutory threshold, or if the agreement exceeds one year. Maine's specific statutory protections create concrete grounds for challenge.
This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.