On June 28, 2019, Governor Mills signed LD 733, An Act To Promote Keeping Workers in
Maine, into law. The Act places limits on non-compete
agreements and bans restrictive employment agreements.
Non-Compete Agreements
The Act defines a non-compete agreement as one restricting the
employee "from working in the same or similar profession
or in a specified geographic area for a certain period of
time following termination of employment."
Low-Wage Employees
Under LD 733 "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.
Employees Earning Above the Threshold
For employees who earn more than 400% of the federal poverty
level, non-competes are disfavored and only enforceable if
necessary to protect the legitimate business interest of the
employer, which includes trade secrets, non-trade secret
confidential information and goodwill. A non-compete agreement may
be
