Maine Non-Compete Agreement
Maine enforces non-compete agreements only when reasonable, and bans them for workers at or below 400% of the poverty level. Attorney review available.
Introduction
In a non-compete agreement an employee promises not to compete with the business after leaving, and Maine flatly bars that promise for anyone earning at or below 400 percent of the federal poverty level, roughly $62,000 a year for a single person. In Maine a non-compete is enforceable, but only within tight limits. Under Maine Revised Statutes Title 26, Section 599-A, non-competes are contrary to public policy and enforceable only to the extent they are reasonable and no broader than necessary to protect an employer's trade secrets, other confidential information, or goodwill. Maine also bans them outright for lower-paid workers: an employer may not require or permit a non-compete for an employee earning wages at or below 400 percent of the federal poverty level (roughly $62,000 a year for a single person, a figure that adjusts annually), and most employed veterinarians cannot be bound at all. Before making an offer, the employer must disclose that a non-compete will be required, and must give the worker a copy at least three business days before signing so they can review and negotiate. The restriction does not even take effect until after one year of employment or six months from signing, whichever is later, except for licensed physicians. An employer that ignores the wage ban or the notice rules faces a civil fine of not less than $5,000. This page explains Maine's rule and offers a template scoped to what Maine actually permits. It is a state-law overview, not a promise that any given clause will hold up.
Key Things to Know
- 1
A non-compete agreement is a contract in which one party, usually an employee, agrees not to compete with a business for a set time and area after the relationship ends. In Maine it is enforceable only to the extent it is reasonable and no broader than necessary.
- 2
Maine treats non-competes as contrary to public policy. Under Title 26, Section 599-A(2), a non-compete is enforceable only to protect the employer's trade secrets, other confidential information, or goodwill, and only so far as reasonable and no broader than necessary to protect that interest.
- 3
Maine has a wage floor. Section 599-A(3)(A) bars an employer from requiring or permitting a non-compete for any employee earning wages at or below 400 percent of the federal poverty level, which is roughly $62,000 a year for a single person and adjusts every year, so confirm the current figure.
- 4
Maine sets no fixed maximum months or miles. Courts in Maine generally weigh the duration, geographic area, and restricted activities against the legitimate interest, and a non-compete may be presumed necessary only if a lesser covenant, such as a nonsolicitation or nondisclosure agreement, cannot protect the interest.
- 5
Maine requires advance notice. The employer must disclose before the offer that a non-compete will be required, and must provide a copy at least three business days before requiring signature so the worker can review and negotiate (Section 599-A(4)).
- 6
A Maine non-compete does not take effect immediately. Under Section 599-A(5) it does not begin until after one year of employment or six months from the date it was signed, whichever is later, except for allopathic or osteopathic physicians. Most employed veterinarians cannot be bound at all.
- 7
Because Maine limits non-competes so tightly, employers often protect information with a nondisclosure or nonsolicitation agreement and the Maine Uniform Trade Secrets Act (Title 10, Sections 1541 to 1548), which Section 599-A itself favors over a broad non-compete.
Key decisions before you file
Before you file a Non-Compete Agreement in Maine, a few decisions shape the document: which option to choose and what each one means. The Non-Compete Agreement guide walks through them.
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Maine Requirements for Non-Compete Agreement
In Maine a non-compete is contrary to public policy and enforceable only to the extent it is reasonable and no broader than necessary to protect the employer's trade secrets, other confidential information, or goodwill (26 M.R.S. Section 599-A(2)). A broad restriction that sweeps wider than the legitimate interest it protects is not enforceable in Maine.
Maine bans a non-compete for any employee earning wages at or below 400 percent of the federal poverty level (Section 599-A(3)(A)). That level is set federally and updated each year, so 400 percent is roughly $62,000 a year for a single person under current guidelines and adjusts annually. Confirm the current federal poverty guideline and do not rely on any other state's fixed salary number.
Maine sets no fixed maximum duration or distance. A non-compete is valid only if it is reasonable and no broader than necessary to protect trade secrets, confidential information, or goodwill (Section 599-A(2)), and may be presumed necessary only if a lesser covenant cannot protect the interest. Courts in Maine generally weigh the time, geography, and restricted activities against that interest, so keep the restriction narrow.
Section 599-A(4) requires the employer to disclose before the offer of employment that a non-compete will be required, and to provide a copy of the agreement at least 3 business days before requiring signature so the worker can review and negotiate. A non-compete presented without this advance disclosure and three-business-day window violates Maine law.
Under Section 599-A(5), a Maine non-compete does not take effect until after one year of the employee's employment or six months from the date the agreement was signed, whichever is later. The only exception is a non-compete with a licensed allopathic or osteopathic physician, which is not subject to that delay. A worker who leaves early may never become bound.
Beyond the wage floor, Section 599-A(3) also bars a non-compete for a veterinarian licensed in Maine who works in a veterinary facility in which the veterinarian has no ownership interest. An employer may not require or even permit a barred worker to enter a non-compete, and a court may not enforce one against a covered veterinarian.
An employer that violates the wage ban (subsection 3) or the disclosure and notice rules (subsection 4) commits a civil violation for which a fine of not less than $5,000 may be adjudged, and the Maine Department of Labor enforces the section (Section 599-A(6)). Confirm the worker is above the wage floor and follow the disclosure and notice steps before anyone signs.
Because Maine limits non-competes so tightly and presumes them necessary only when a lesser covenant will not do, Maine employers often rely on a nondisclosure or nonsolicitation agreement and the Maine Uniform Trade Secrets Act (Title 10, Sections 1541 to 1548) to protect confidential information without a broad restriction on where a former worker can work.
Frequently Asked Questions
Yes, but only within limits. Maine Revised Statutes Title 26, Section 599-A(2) treats non-competes as contrary to public policy and makes them enforceable only to the extent they are reasonable and no broader than necessary to protect the employer's trade secrets, other confidential information, or goodwill. Maine also bans them outright for employees earning wages at or below 400 percent of the federal poverty level and for most employed veterinarians. A broad or low-wage non-compete is not enforceable in Maine.
Maine does not set a fixed maximum number of months in the statute. A non-compete is enforceable under Section 599-A(2) only to the extent it is reasonable and no broader than necessary to protect a legitimate interest, so courts in Maine generally weigh the duration, geographic area, and restricted activities against that interest. A shorter, tightly scoped restriction tied to specific trade secrets or goodwill is far more likely to hold up than a long, broad one. Separately, the restriction does not even take effect until after one year of employment or six months from signing, whichever is later.
Maine bans a non-compete for any employee earning wages at or below 400 percent of the federal poverty level (Section 599-A(3)(A)). That poverty level is set by the federal government and updated each year, so 400 percent works out to roughly $62,000 a year for a single person under the current guidelines, a figure that adjusts annually. An employer may not require or even permit a non-compete for a worker at or below that floor, so confirm the current federal poverty guideline before relying on any non-compete in Maine.
Yes. Section 599-A(4) requires the employer to disclose, before making an offer of employment that will require a non-compete, that a non-compete will be required. The employer must then provide a copy of the agreement at least three business days before requiring the worker to sign it, to give time to review the terms and negotiate the agreement or the employment if the worker wishes. A non-compete presented without this advance disclosure and three-business-day window violates Maine law.
Not right away. Under Section 599-A(5), the terms of a Maine non-compete do not take effect until after one year of the employee's employment with the employer or a period of six months from the date the agreement was signed, whichever is later. The one exception is a non-compete with an allopathic or osteopathic physician licensed in Maine, which is not subject to that delay. This waiting period means a worker who leaves early may never become bound by the restriction at all.
Maine penalizes it. Under Section 599-A(6), an employer that violates the wage ban (subsection 3) or the disclosure and notice rules (subsection 4) commits a civil violation for which a fine of not less than $5,000 may be adjudged, and the Maine Department of Labor is responsible for enforcement. That exposure is why a Maine employer should confirm the worker is above the wage floor and follow the disclosure and three-business-day notice steps before asking anyone to sign a non-compete.
Yes. Section 599-A(3) bars a non-compete for any employee earning wages at or below 400 percent of the federal poverty level, and for a veterinarian licensed in Maine who works in a veterinary facility in which the veterinarian has no ownership interest. Physicians are treated differently in one respect: a non-compete with a licensed allopathic or osteopathic physician is not subject to the one-year or six-month delayed effective date that applies to other Maine workers.
No. In 2024 the Federal Trade Commission issued a rule that would have banned most non-competes nationwide, but a federal court set it aside before it took effect, so it is not currently in force and its status has remained unsettled. Either way, Maine's own statute, Title 26, Section 599-A, governs non-competes in Maine: enforceable only to the extent reasonable and no broader than necessary, banned for lower-wage workers and most veterinarians, and subject to disclosure, notice, and delayed-effective-date rules.