Can I require employees to sign non-compete agreements in Maine? What are the requirements?

Based on the updated information provided in ^[1.2], non-compete agreements are generally considered contrary to public policy in Maine. However, non-compete agreements may be enforceable to the extent that they are reasonable and no broader than necessary to protect one or more of the following legitimate business interests of the employer: trade secrets, confidential information that does not qualify as a trade secret, or the employer’s goodwill. A non-compete 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 non-solicitation agreement or a non-disclosure or confidentiality agreement.

Additionally, an employer may not require or permit an employee earning wages at or below 400% of the federal poverty level to enter into a non-compete agreement with the employer. An employer shall disclose prior to an offer of employment with the employer that will require the acceptance of a non-compete agreement a statement that a non-compete agreement will be required. An employer shall notify an employee or prospective employee of a non-compete agreement requirement and provide a copy of the non-compete 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. The terms of a non-compete 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.

Therefore, while non-compete agreements may be enforceable in Maine under certain circumstances, there are several requirements that must be met. It is recommended that you consult with a legal professional to ensure that any non-compete agreement you wish to implement complies with Maine law.

Source(s):

• [1.2] Noncompete agreements

Jurisdiction

Maine

• Labor