There are some situations where a Maine non-compete agreement might be used to limit where someone can work during and after leaving the company. This agreement is typically used to prevent the employer’s confidential information from being shared with a competitor by current and former employees. Even though a non-compete agreement in Maine can be a useful tool, it must also be legally enforceable.
Is a Non-Compete Legally Enforceable in Maine?
Yes, a non-compete agreement is legally enforceable in Maine, but it has to have a legitimate business interest. A non-compete agreement cannot be used vindictively to make life unduly harsh or restrictive for an employee after leaving the company. If you plan on using a non-compete agreement to protect your business in Maine, you must understand what can be protected and what cannot. [1]
What’s Protected?
In general, any information that is deemed vital to the interests of the business can be protected by a Maine non-compete agreement. For example, trade secrets and other confidential information, including the financial status of the company, can be protected using a non-compete agreement. In addition, information about goodwill shown by the company can also be protected by Maine non-compete agreements.
Reasonable Use and Exemptions
For a non-compete agreement to be reasonably enforceable in Maine, it cannot be any broader than necessary to protect the legitimate business interests of the employer. Furthermore, it has to be reasonable in terms of time and space, and it cannot create an undue burden for the employee.
Furthermore, non-compete agreements in Maine signed after September 18, 2019 must be given to the employee with at least 3 days’ notice prior to the deadline to give the employee time to review the document before signing it. Finally, for this agreement to be valid, the employee has to have been employed for at least a year or must remain employed for at least 6 months after signing the document, whichever is longer.
Those who work in the broadcast industry and low-wage workers earning less than 400 percent of the federal poverty level are not allowed to be restricted by a non-compete agreement.
- Enforceable when terminated without cause? Yes
- Employee non-solicitation agreement permitted? Yes
- Customer non-solicitation agreements permitted? Yes
- Does continuing employment equal sufficient consideration? Yes
Non-Compete Agreement Maine Limitations
There are some potential limitations related to non-compete agreements in Maine. If your non-compete agreement does not comply with these limitations, then it may not be enforceable.
Limitations on time
In the event that the non-compete is breached, the offended party has six years to bring a lawsuit.
Non-compete agreement Maine geographical limitations
There are no specific geographic limitations written into Maine statutes; however, a non-compete agreement could not be unduly harsh or restrictive against an employee. If a judge deems the geographic limitations to be overly broad, the non-compete agreement could be thrown out.
Maine Non-Compete Agreement Sample
If you are drawing up a non-compete agreement, take a look at this Maine non-compete agreement template, which is available for download as a PDF and in Word format:
Non-Compete Agreement
