Maine non-compete agreements are enforceable only in narrow circumstances. As of 2026, employers cannot require a non-compete from any employee earning $63,840 or less, must disclose the requirement in the job advertisement, must provide the agreement three business days before signing, and cannot enforce it until the later of one year after hire or six months after signing. As of July 13, 2026, employers may not enter into or enforce post-termination non-competes with licensed health care practitioners who hold no ownership interest in the business. Violations carry a fine of not less than $5,000.
Maine has some of the most employee-friendly non-compete laws in the country, and they became significantly more restrictive for healthcare employers in 2026. Whether you're a healthcare employer, a small business owner or an HR professional, here's what applies.
Current as of September 2026.
Maine Non-Compete Law Overview
Maine regulates non-compete agreements under 26 M.R.S.A. § 599-A, passed in 2019 as part of "An Act to Promote Keeping Workers in Maine." The law established some of the strictest non-compete restrictions in New England and has been expanded several times since. In Maine, non-compete agreements are considered contrary to public policy and are enforceable only under specific, limited circumstances.
When Are Non-Competes Enforceable in Maine?
A non-compete agreement in Maine is enforceable only if it meets all of the following requirements.
1. Legitimate business interest. The agreement must protect one of three specific interests: trade secrets, confidential information, or the employer's goodwill. Maine courts will not enforce non-competes that go beyond these. A non-compete is presumed necessary only if the legitimate business interest cannot be adequately protected through a less restrictive alternative, such as a non-solicitation or confidentiality agreement.
2. Employee earns above the income threshold. The 2026 threshold is $63,840, equal to 400% of the federal poverty level. Employers cannot require or permit employees earning at or below that amount to sign a non-compete. The threshold adjusts annually with the federal poverty level.
3. Advance disclosure. Employers must disclose in any job advertisement that a non-compete will be required for the position, and must provide the employee with a copy of the agreement at least three business days before requiring a signature. This notice requirement is mandatory and cannot be waived.
4. Delayed effective date. A non-compete cannot take effect until the later of one year after the employee is hired, or six months after the employee signs. You cannot enforce a non-compete against an employee who leaves before completing one year of employment, regardless of what the agreement says.
5. Reasonable scope. The agreement must be reasonable in duration, geographic scope and the type of employment restricted. Maine courts evaluate reasonableness when an employer seeks to enforce the agreement, not when it is written — and they will not rewrite an overly broad agreement to make it enforceable. They will void it.
Maine's Healthcare Practitioner Non-Compete Ban
On April 15, 2026, Governor Janet T. Mills signed LD 2200, "An Act Relating to Noncompete Agreements Between Employers and Health Care Practitioners," amending 26 M.R.S.A. § 599-A.
What it prohibits. Employers may not enter into or enforce post-termination non-compete agreements with licensed health care practitioners who do not hold an ownership interest in the employer's business. This is a prohibition, not a tightening of the reasonableness test — the ownership interest is the dividing line.
Who is covered. Health care practitioners are defined broadly — individuals qualified or licensed to provide health care. In practice that reaches physicians, nurses, nurse practitioners, physician assistants, dentists, physical therapists, mental health counselors and other licensed health professions.
When it applies. To all non-compete agreements entered into, or renewed, on or after July 13, 2026. Note that several Maine employment law firms cite July 13 while the Maine Department of Labor has listed LD 2200 among laws effective July 29, 2026. Complying from the earlier date is the safer reading; confirm with the Bureau of Labor Standards at 207-623-7900 if the difference matters to a specific agreement.
The renewal trap. Because the law reaches agreements that renew, an existing contract containing both a non-compete and an automatic annual renewal appears to have its non-compete invalidated at the next renewal following the effective date. A clause signed years ago can lapse without anyone touching the document.
The penalty. An employer that violates the law commits a civil violation and faces a fine of not less than $5,000 from the Maine Department of Labor.
Why it passed. Maine's healthcare workforce shortage is among the most acute in the country. The legislature's rationale was that non-competes in healthcare restrict patient access to care by preventing practitioners from serving communities where they're needed, particularly in rural areas.
What Healthcare Employers Can Still Use
The law does not prohibit every restrictive covenant. Subject to careful drafting and applicable law, healthcare employers may still consider non-competes that apply during the term of employment rather than after it, non-competes entered into in connection with the sale of a business, and non-competes with practitioners who hold an ownership interest in the employer, such as a shareholder or partner.
Confidentiality agreements and non-solicitation agreements also remain available and are generally viewed more favorably by Maine courts.
Who Cannot Sign Non-Competes in Maine
Low-wage employees. Any employee earning at or below $63,840 annually — 400% of the federal poverty level in 2026 — cannot be required to sign a non-compete.
Veterinarians without an ownership interest. An employer may not require or permit a Maine-licensed veterinarian to enter a non-compete if the veterinarian is employed in a facility in which they hold no ownership interest.
Health care practitioners without an ownership interest. New as of 2026, under LD 2200.
No-Poach Agreements Are Prohibited
Maine law explicitly prohibits no-poach agreements between employers. Businesses cannot agree with one another not to solicit or hire each other's employees. This applies to franchise agreements, staffing arrangements and other employer-to-employer arrangements.
Two Things Maine Now Requires in a Job Advertisement
Non-compete disclosure is no longer the only advertising obligation Maine imposes on employers.
Non-compete disclosure. If a position requires a non-compete, the job advertisement must say so. Failure to disclose is a statutory violation subject to a $5,000 fine.
Pay range. As of July 29, 2026, employers with 10 or more employees must include the anticipated pay range in advertisements for available positions. See Maine's pay transparency law.
Both requirements attach to the advertisement itself, not to the offer letter or the interview.
Penalties for Violating Maine Non-Compete Law
An employer who violates the statute may be subject to a $5,000 fine. Violations include requiring a low-wage employee to sign a non-compete, failing to provide the required three-day advance notice, and failing to disclose a non-compete requirement in job advertisements. The healthcare provisions carry a fine of not less than $5,000.
Beyond the statutory fine, improperly drafted or enforced non-competes expose Maine employers to litigation costs, reputational damage and difficulty recruiting in a tight labor market — candidates increasingly scrutinize non-compete requirements before accepting offers.
Alternatives to Non-Competes in Maine
Non-disclosure agreements. Protecting trade secrets and confidential information through an NDA is generally more enforceable than a non-compete and doesn't restrict the employee's ability to work in their field.
Non-solicitation agreements. Prohibiting former employees from soliciting your clients or customers for a defined period is generally enforceable in Maine when narrowly drafted and tied to a legitimate business interest.
Non-recruitment agreements. Prohibiting former employees from recruiting your current staff is generally more enforceable than a broad non-compete — though note that employer-to-employer no-poach agreements are prohibited.
Garden leave provisions. Paying employees their full salary during a defined post-employment period in exchange for not working for competitors is gaining traction as an alternative to traditional non-competes.
Practical Guidance for Maine Employers
Review every existing agreement with a healthcare practitioner. Check the renewal terms specifically, not just the signing date — automatic renewal after the effective date is what invalidates the clause.
Check whether the practitioner holds an ownership interest. That is the line the new law draws, and it decides whether a post-termination non-compete is available at all.
Update your job advertisements. Disclose any non-compete requirement, and include a pay range if you employ 10 or more people.
Provide the three business days. Always give the employee a copy of the agreement at least three business days before requiring a signature.
Don't use non-competes for positions paying $63,840 or less. Using them anyway risks the fine and voids the agreement.
Consider alternatives first. Given Maine's restrictions and courts' skepticism, a well-drafted NDA or non-solicitation agreement often provides more reliable protection with less legal risk.
Consult a Maine employment attorney. Non-compete law is fact-specific and changing. If you're drafting or enforcing a non-compete for a key employee, get advice on your specific situation.
Frequently Asked Questions
Are non-compete agreements enforceable in Maine?
Yes, but only in narrow circumstances. The agreement must protect trade secrets, confidential information or goodwill; the employee must earn more than $63,840; the requirement must be disclosed in the job advertisement; the employee must receive the agreement three business days before signing; and the restriction cannot take effect until the later of one year after hire or six months after signing.
Can Maine healthcare employers require non-competes?
Not from licensed health care practitioners who hold no ownership interest in the business, for agreements entered into or renewed on or after July 13, 2026. Practitioners with an ownership interest, non-competes that apply during employment, and non-competes tied to the sale of a business are treated differently.
What is Maine's non-compete salary threshold in 2026?
$63,840, equal to 400% of the federal poverty level. Employees earning at or below that cannot be required to sign a non-compete. The figure adjusts annually.
Does Maine require non-competes to be disclosed in job postings?
Yes. If a position requires a non-compete, the job advertisement must say so. Failing to disclose is a statutory violation subject to a $5,000 fine.
What happens to an existing healthcare non-compete that renews?
A contract containing both a non-compete and an automatic renewal provision appears to have its non-compete invalidated at the first renewal following the law's effective date, even if nobody amends the document.
What is the penalty for violating Maine's non-compete law?
A fine of $5,000, and not less than $5,000 for violations of the healthcare provisions. Employers also face litigation costs and a voided agreement.
Can Maine employers use no-poach agreements?
No. Maine explicitly prohibits agreements between employers not to solicit or hire each other's employees, including in franchise and staffing arrangements.
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This page summarizes publicly available information for general purposes and is not legal advice. Consult a Maine employment attorney about your specific situation.