An Act To Promote Keeping Workers in Maine
Maine Legislature, Session 129, LD 0733
Committee Amendment CA_A_H280 (House)

COMMITTEE AMENDMENT "II" to H.P. 538, L.D. 733, Bill, "An Act To 
Promote Keeping Workers in Maine" 
Amend the bill by strildng out everything after the enacting clause and inserting the 
following: 
1Sec. 1. 26 MRSA §§599-A and 599-B are enacted to read: 
§599-A. Noncompete agreements 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. 
11Federal poverty level
means the nonfarm income official poverty line for an 
individual, as defmed by the federal Office of Management and Budget and revised 
annually in accordance with the Omnibus Budget Reconciliation Act of 1981, Section 
673(2). 
B. 
11Noncompete agreement
means a contract or contract provision that prohibits an 
employee or prospective employee from working in the same or a similar profession 
or in a specified geographic area for a certain penod of time following termination of 
employment. 
2. 
Public policy; enforceability of noncompete agreements. 
Noncompete 
agreements are contrary to public policy and are enforceable only to the extent that they 
are reasonable and are no broader than necessary to protect one or more of the following 
legitimate business interests of the employer: 
A. The employer1s trade secrets, as defined in Title 10, section 1542, subsection 4; 
B. The employer's confidential information that does not qualify as a trade secret; or 
C. The employer
1s goodwill. 
A noncompete agreement may be presumed necessary if the legitimate business interest 
cannot be adequately protected through an alternative restrictive covenant, including but 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT A" to H.P. 538, L.D. 733 
not limited to a nonsolicitation agreement or a nondisclosure or confidentiality 
agreement. 
3. Prohibited for certain workers. Notwithstanding subsection 2, 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. 
4. Disclosure; notice. An employer shall disclose prior to an offer of employment 
with the employer that will require the acceptance of a noncompete agreement a 
statement that a noncompete agreement will be required. 
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. 
5. 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. 
6. Penalty; enforcement. An employer that violates subsection 3 or 4 commits a 
civil violation for which a fine of not less than $5,000 may be adjudged. The Depa1tment 
of Labor is responsible for enforcement of this section. 
7. Application. This section applies to all noncompete agreements entered into or 
renewed after the effective date of this section. 
§599-B. Restrictive employment agreements 
1. Definition. For purposes of this section, "restrictive employment agreement" 
means an agreement that: 
A. Is between 2 or more employers, including through a franchise agreement or a 
contractor and subcontractor agreement; and 
B. Prohibits or restricts one employer from soliciting or hiring another employer's 
employees or former employees. 
2. Restrictive employment agreements prohibited. An employer may not: 
A. Enter into a restrictive employment agreement; or 
B. Enforce or threaten to enforce a restrictive employment agreement. 
3. Penalty; enforcement. An employer that violates subsection 2 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 this section. 
Sec. 2. Appropriations and allocations. The following appropriations and 
allocations are made. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT A 
"to H.P. 538, L.D. 733 
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 and restrictive employment agreements. 
GENERAL FUND 
2019-20 
2020-21 
POSITIONS - LEGISLATIVE COUNT 
0.500 
0.500 
Personal Services 
$25,869 
$34,492 
All Other 
$6,732 
$7,482 
GENERAL FUND TOTAL 
$32,601 
$41,974 
SUMMARY 
This amendment strikes and replaces the bill. It moves the language in the bill to 
another location in the Maine Revised Statutes, Title 26 and restricts the enforceability of 
noncompete agreements to the extent that they are reasonable and are no broader than 
necessary to protect a legitimate business interest of the employer, such as trade secrets, 
confidential information or goodwill. It also adds a presumption that a noncompete 
agreement is necessary if the legitimate business interest cannot be adequately protected 
through an alternative restrictive covenant. As in the bill, it also provides for ongoing 
appropriations to provide for enforcement of the provisions. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/01/19 feac::. 
LD 733 
LR238(02) 
An Act To Promote Keeping Workers in Maine 
Fiscal Note for Bill as Amended by Committee Amendment fi,{ If-)8'u) 
Committee: Labor and Housing 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Correctional and Judicial Impact Statements 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2019-20 
FY2020-21 
$32,601 
$41,974 
$32,601 
$41,974 
Projections 
FY2021-22 
$43,354 
$43,354 
Projections 
FY 2022-23 
$44,789 
$44,789 
The additional workload associated with the minimal number of new cases filed in the court system does not require 
additional funding at this time. 
The collection of additional fine revenue will increase General Fund and dedicated revenue by minor amounts. 
Fiscal Detail and Notes 
This bill includes General Fund appropriations of $32,601 in fiscal year 2019-20 and $41,974 in fiscal year 2020-21 
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 and restrictive employment agreements. This fiscal note assumes this legislation becomes effective 
October 1, 2019. 
LR0238(02) - Fiscal Note - Page 1 of 1