Restrictions on Non-Competition Agreements VETOED in Maine

The Governor of Main, Janet Mills, vetoed the legislation (Bill LD 1496 that would have restricted the context in which employers in the state of Maine could use and enforce Non-Compete Agreements.

 

Under the current law, Maine employers may use non-competition agreements to protect trade secrets, confidential information (which does not qualify as a trade secret), and employer goodwill. Employers must disclose the agreements before an offer of employment and give employees at least three business days before requiring that an agreement be signed. Additionally, employees making at or below 400 percent of the federal poverty level (currently, $60,240 a year) cannot enter into non-competition agreements. Civil penalties accompany violations of income level and disclosure requirements. The amendments of 2023 added a prohibition on non-competition agreements for veterinarians unless the veterinarian has an ownership interest in the facility. If it became law, LD 1496 would have left many of these provisions in place, including the notice requirements.

 

Source(s): JacksonLewis, received on April 4, 2024; Maine Legislature, accessed on April 5, 2024