An Act To Promote Keeping Workers in Maine
Maine Legislature, Session 128, LD 0487
Committee Amendment CA_A_H49 (House)

COMMITTEE AMENDMENT "A " to H.P. 350, L.D. 487, Bill, "An Act To 
Promote Keeping Workers in Maine" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 26 MRSA c. 7, sub-c. 12 is enacted to read: 
SUBCHAPTER 12 
NONCOMPETE AGREEMENTS 
§879. Noncompete agreements 
1. Definitions. As used in this subchapter, unless the context otherwise indicates, 
the following terms have the following meanings. 
A. "Federal poverty level" means the nonfarm income official poverty line for an 
individual, as defined by the federal Office of Management and Budget and revised 
annually in accordance with the United States Omnibus Budget Reconciliation Act of 
1981, Section 673, subsection 2. 
B. "Noncompete agreement" means a contract or contract provision that prohibits an 
employee or prospective 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. 
2. Prohibited for certain workers. An employer may not require or permit an 
employee earning wages at or below 300% of the federal poverty level to enter into a 
noncompete agreement with the employer. 
3. Disclosure; notice. 
An employer shall disclose in any advertisement for a 
position of employment with the employer that will require the acceptance of a 
noncompete agreement a statement that a noncompete agreement will be required. 
COMMITTEE AMENDMENT 
cf..~' 
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COMMITTEE AMENDMENT "A" to H.P. 350, L.D. 487 
An employer shall notify an employee or prospective employee of a noncompete 
agreement requirement and provide a copy of the noncompete 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. 
4. Effective date of a noncompete agreement. Except for a noncompete agreement 
between an employer and an allopathic physician or an osteopathic physician licensed 
under Title 32, chapter 48 or chapter 36, respectively, the terms of a noncompete 
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. 
5. Penalty; enforcement. A person that violates subsection 2 or 3 commits a civil 
violation for which a fine of not less than $5,000 may be adjudged. The Department of 
Labor shall enforce this subchapter. 
6. Application. This subchapter applies to all noncompete agreements entered into 
or renewed after the effective date of this subchapter. 
Sec. 2. Appropriations and allocations. 
The following appropriations and 
allocations are made. 
LABOR, DEPARTMENT OF 
Regulation and Enforcement 0159 
Initiative: Provides ongoing funds for one half-time Labor and Safety Inspector position 
and related All Other costs associated with enforcing the laws related to noncompete 
agreements. 
GENERAL FUND 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
GENERAL FUND TOTAL 
SUMMARY 
2017-18 
2018-19 
0.500 
0.500 
$25,869 
$34,492 
$6,732 
$7,482 
$32,601 
$41,974 
This amendment replaces the bill, which is a concept draft, and prohibits an employer 
from requiring or entering into a so-called noncompete agreement with an employee 
earning wages that are at or below 3 00% of the federal poverty level. A noncompete 
agreement is defined as a contract or contract provision that prohibits an employee or 
prospective 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. If an 
employer requires a noncompete agreement for a position of employment, the employer 
must disclose that requirement in any advertisement for that position, and an employer 
must provide an employee or prospective employee with a copy of a noncompete 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 350, L.D. 487 
agreement at least 3 business days before requiring that employee or prospective 
employee to sign the agreement. The terms of a noncompete agreement, except for a 
noncompete agreement with a physician, are not in effect until after an employee has 
been employed with the employer for at least one year or a period of 6 months has 
passed, whichever is later. An employer that violates this law commits a civil violation 
for which a fine of not less than $5,000 may be adjudged. The Department of Labor is 
responsible for enforcement of the law. The amendment also adds an appropriations and 
allocations. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/10/17 ::l,rl'ac 
LD487 
LR378(02) 
An Act To Promote Keeping Workers in Maine 
Fiscal Note for Bill as Amended by Committee Amendment •A• ( H 
~ Lj-~ 
Committee: Labor, Commerce, Research and Economic Development 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Correctional and Judicial Impact Statements 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2017-18 
FY 2018-19 
$32,601 
$41,974 
$32,601 
$41,974 
Projections 
FY 2019-20 
$43,354 
$43,354 
The collection of additional fines may also increase General Fund revenue by minor amounts. 
Fiscal Detail and Notes 
Projections 
FY 2020-21 
$44,789 
$44,789 
This bill includes General Fund appropriations of $32,601 in fiscal year 2017-18 and $41,974 in fiscal year 2018-19 
to the Regulation and Enforcement program within the Department of Labor for one half-time Labor and Safety 
Inspector position and related All Other costs associated with the enforcement of the laws related to noncompete 
agreements. This fiscal note assumes this legislation becomes effective October 1, 2017. 
LR0378(02) - Fiscal Note - Page 1 of 1