An Act To Promote Keeping Workers in Maine
Maine Legislature, Session 129, LD 0733
Committee: Labor and Housing
Sponsors: SCHNECK, BELLOWS, CARDONE, CUDDY, KORNFIELD, MARTIN, MASTRACCIO, CHIPMAN, DIAMOND

Legislative Document
No. 733
H.P. 538
House of Representatives, February 11, 2019
An Act To Promote Keeping Workers in Maine
Reference to the Committee on Labor and Housing suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative SCHNECK of Bangor.
Cosponsored by Senator BELLOWS of Kennebec and
Representatives: CARDONE of Bangor, CUDDY of Winterport, KORNFIELD of Bangor, 
MARTIN of Sinclair, MASTRACCIO of Sanford, McCREA of Fort Fairfield, Senators: 
CHIPMAN of Cumberland, DIAMOND of Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  26 MRSA c. 7, sub-c. 13 is enacted to read:
SUBCHAPTER 13
NONCOMPETE AGREEMENTS AND RESTRICTIVE EMPLOYMENT 
AGREEMENTS
§880.  Noncompete agreements
1.  Definitions.  As used in this section, 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 Omnibus Budget Reconciliation Act of 1981, Section 
673(2).
B.  "Noncompete 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 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.
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 section.
6.  Application.  This subchapter applies to all noncompete agreements entered into 
or renewed after the effective date of this subchapter.
§880-A.  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.  A person 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 shall enforce this section.
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 and restrictive employment agreements.
SUMMARY
This bill prohibits an employer from requiring or entering into a so-called 
noncompete agreement with an employee earning wages that are at or below 300% 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 a 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 
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
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 agreement at least 3 business days 
before requiring that employee or prospective employee to sign the agreement.  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 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 from the date the agreement was signed, 
whichever is later.
The bill also prohibits a restrictive employment agreement between 2 or more 
employers that prohibits or restricts one employer from soliciting or hiring another 
employer's employees or former employees.