Maine § 599-A. - Noncompete agreements
Full text of Maine Maine Revised Statutes § 599-A. — Noncompete agreements, with citation guidance and answers to common questions.
§ 599-A.. Noncompete agreements
1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
A. "Federal poverty level" means the nonfarm income official poverty line for an individual, as defined by the federal Office of Management and Budget and revised annually in accordance with the Omnibus Budget Reconciliation Act of 1981, Section 673(2). [PL 2019, c. 513, §1 (NEW).]
B. "Noncompete agreement" means a contract or contract provision that prohibits an employee or prospective employee from working in the same or a similar profession or in a specified geographic area for a certain period of time following termination of employment. [PL 2019, c. 513, §1 (NEW).]
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:
A. The employer's trade secrets, as defined in Title 10, section 1542, subsection 4; [PL 2019, c. 513, §1 (NEW).]
B. The employer's confidential information that does not qualify as a trade secret; or [PL 2019, c. 513, §1 (NEW).]
C. The employer's goodwill. [PL 2019, c. 513, §1 (NEW).]
A noncompete agreement may be presumed necessary if the legitimate business interest cannot be adequately protected through an alternative restrictive covenant, including but not limited to a nonsolicitation agreement or a nondisclosure or confidentiality agreement.
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:
A. The employee is earning wages at or below 400% of the federal poverty level; or [PL 2023, c. 118, §1 (NEW).]
B. The employee is a veterinarian licensed under Title 32, chapter 71‑A and is employed in a veterinary facility in which the employee does not have an ownership interest.
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.
An employer shall notify an employee or prospective employee of a noncompete agreement requirement and provide a copy of the noncompete agreement not less than 3 business days before the employer requires the agreement to be signed to allow time for the employee or prospective employee to review the agreement and negotiate the terms of the agreement or employment with the employer if the employee or prospective employee wishes to do so.
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.
Frequently Asked Questions About Maine § 599-A.
What does Maine Revised Statutes § 599-A. cover?
Section 599-A. ("Noncompete agreements") is part of the Maine Revised Statutes, the codified statutory law of Maine. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Maine § 599-A.?
A common citation format is "Maine Revised Statutes § 599-A." (Maine). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Maine law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Maine official source linked on this page or consult a licensed Maine attorney.
How does Maine § 599-A. apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Maine can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Maine.