Maine Non-Compete Laws (2026): Are Non-Competes Enforceable?

Maine restricts non-competes but does not ban them for most workers. Under 26 M.R.S. 599-A, non-compete 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 an employer's trade secrets, confidential information or goodwill. The statute bans them outright for employees earning at or below 400% of the federal poverty level, for veterinarians who do not own part of their practice and, for agreements entered into or renewed on or after July 29, 2026, for health care practitioners who have no ownership interest in their employer.

For how other states treat these agreements, see our non-compete laws by state guide.

Information last verified on 2026-10-08. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers Maine law on employee non-compete agreements under 26 M.R.S. 599-A (as amended by Public Law 2025, chapter 718), the employer no-poach ban in 26 M.R.S. 599-B, and Maine Supreme Judicial Court case law, with a short note on the federal FTC rule. It does not cover trade-secret claims (see Maine trade secret laws), severance pay (see Maine severance pay laws), or covenants made when a business is sold.

Are non-competes enforceable in Maine?

Some are. Maine starts from the position that a non-compete is against public policy, then lets a court enforce it only as far as it is reasonable and no broader than necessary. The statute names the three interests that can justify one:

• trade secrets, as defined in 10 M.R.S. 1542(4);
• confidential information that is not a trade secret; and
• goodwill.

Section 599-A(2) adds that a non-compete may be presumed necessary when the employer's legitimate business interest cannot be adequately protected by an alternative covenant, such as a non-solicitation agreement or a nondisclosure agreement. In other words, an employer that could protect itself with a narrower promise has a harder time justifying a ban on working for a competitor.

The Legislature wrote that standard into the statute in 2019 (Public Law 2019, chapter 513), but it tracks what the Maine Supreme Judicial Court had already said. In Chapman & Drake v. Harrington, 545 A.2d 645 (Me. 1988), the court held that employee non-competes are contrary to public policy and are enforced only to the extent they are reasonable and sweep no wider than necessary to protect the business interests at stake. It treated reasonableness as a question of law for the court, judged by the covenant's duration, geographic area and the interests it protects, and held that protecting an employer simply from competition is not a legitimate interest.

Section 599-A itself applies only to non-competes entered into or renewed after the 2019 law creating it took effect (599-A(7)). An older agreement that was never renewed falls outside the section and is left to the court-made reasonableness test.

Who cannot be bound by a non-compete in Maine

Section 599-A(3) lists the workers an employer "may not require or permit" to enter into a non-compete. Each ban has its own scope and start date.

The 400% of poverty level threshold

The low-wage ban reads: "The employee is earning wages at or below 400% of the federal poverty level." The statute defines the federal poverty level as the nonfarm income official poverty line set by the federal Office of Management and Budget and revised annually under section 673(2) of the Omnibus Budget Reconciliation Act of 1981.

Maine's statute does not convert that into a dollar amount, and we did not find a dollar figure published by the Maine Department of Labor. Because the poverty line changes every year, the cutoff moves too. If you are near the line, ask the Department of Labor how it applies the threshold to your wages.

Veterinarians

The veterinarian ban, added by Public Law 2023, chapter 118, covers a veterinarian licensed under Title 32, chapter 71-A who works in a facility in which the veterinarian has no ownership interest. The statute also tells courts not to enforce such an agreement that was entered into or renewed before the ban's effective date (which the LD 2200 bill text gives as October 25, 2023) unless the veterinarian has an ownership interest. An owner-veterinarian's older agreement may still be enforced.

Maine's 2026 health care practitioner law (LD 2200)

LD 2200 became Public Law 2025, chapter 718. The bill page records it as enacted and signed by the Governor on April 15, 2026. The Maine Department of Labor's 2026 labor standards presentation lists it as a law change effective July 29, 2026, the general effective date for non-emergency laws from that session.

The law does four things:

• Defines "health care practitioner" as an individual qualified or licensed under state law to perform or provide health care services to persons in Maine.
• Bans non-competes for non-owners. An employer may not require or permit a non-compete with a health care practitioner employed by an entity in which the practitioner has no ownership interest (26 M.R.S. 599-A(3)(C)).
• Protects patient choice. Any enforceable non-compete between an employer and a health care practitioner must recognize an individual's right to choose that individual's own health care practitioner.
• Extends the delayed-effect exemption. The rule that a non-compete waits a year before taking effect (below) used to exempt only physicians; chapter 718 extends the exemption to all health care practitioners. A second 2026 law with physician-only wording takes effect January 1, 2027 (see below).

Chapter 718 applies to non-competes entered into or renewed on or after its effective date. An agreement a practitioner signed before July 29, 2026 and has not renewed since is judged under the earlier version of 599-A.

LD 2200 as first printed, titled "An Act to Prohibit Noncompete Clauses for Health Care Professionals," would have banned all practitioner non-competes. Amendments narrowed it to practitioners without an ownership interest, so the enacted law is not a blanket ban. For background, see our news story on Maine's health care non-compete law.

The Maine Revisor's online text of 599-A now includes the chapter 718 amendments.

Notice before you sign

Section 599-A(4) sets two notice duties for employers:

• Before the offer: the employer must disclose, before making an offer of employment that will require you to accept a non-compete, that one will be required.
• Three business days: the employer must give you a copy of the non-compete not less than 3 business days before the agreement must be signed.

Breaking either rule is a civil violation subject to the fine described below.

When a Maine non-compete takes effect

Under 26 M.R.S. 599-A(5), the terms of a non-compete do not take effect until after one year of employment or six months from the date it was signed, whichever is later. Health care practitioners are the exception. Before 2026 only physicians were exempt from this waiting period; for agreements entered into or renewed on or after July 29, 2026, chapter 718 extends the exemption to all health care practitioners. In practice that matters for practitioner-owners, since chapter 718 bars non-competes with non-owner practitioners.

A second 2026 law, Public Law 2025, chapter 738, also amends subsection 5 effective January 1, 2027, using wording that exempts only allopathic and osteopathic physicians. The Revisor of Statutes marks the two versions as a conflict, so which exemption applies from 2027 may depend on how the Legislature reconciles them.

Consideration, duration and geography

The statute does not set a maximum length or a mileage limit, and it adds no rule about what an employer must give in exchange. Those questions fall to the reasonableness test and the case law.

In Brignull v. Albert, 666 A.2d 82 (Me. 1995), decided before the 2019 statute, the court held that continued employment is consideration for an employment non-compete. It judged reasonableness by duration, geography and the interests protected, found a clause protecting existing patients and goodwill reasonable, and enforced a $30,000 liquidated-damages clause.

Fired or laid off versus quitting

Section 599-A draws no distinction between an employee who resigns and one who is fired or laid off. The same bans, notice rules and reasonableness test apply however the job ends.

What a court does with an overbroad non-compete

The statute makes a non-compete enforceable "only to the extent" it is reasonable and no broader than necessary, which on its face contemplates partial enforcement. It does not contain a blue-pencil or reformation clause. In Chapman & Drake and Brignull, the court assessed each covenant only as the employer sought to apply it. We did not locate a Maine appellate decision squarely deciding whether a court may rewrite an overbroad covenant.

Choice of law and forum

Neither 599-A nor 599-B contains a choice-of-law or forum-selection provision. How a court treats a clause choosing another state's law in a Maine worker's agreement is a question for a lawyer licensed in Maine.

Penalties and enforcement

Under 26 M.R.S. 599-A(6), an employer that violates the ban in subsection 3 or the notice rules in subsection 4 commits a civil violation, for which "a fine of not less than $5,000 may be adjudged." The statute states: "The Department of Labor is responsible for enforcement of this section." The text does not create a private right of action or shift attorney's fees to employees.

Non-solicits, NDAs and no-poach agreements

Section 599-A does not otherwise regulate customer non-solicitation agreements or nondisclosure agreements; it treats them as the narrower alternatives that bear on whether a non-compete is necessary.

Agreements between employers not to solicit or hire each other's workers are a different matter. Under 26 M.R.S. 599-B, an employer may not enter into, enforce or threaten to enforce such a no-poach agreement, including in franchise and contractor or subcontractor arrangements. A violation is a civil violation with a fine of not less than $5,000, and the Department of Labor enforces it.

Non-competes and trade secrets

A non-compete is a contract promise not to work for a competitor, while trade secrets are protected by a separate body of law. See Maine trade secret laws for that statute.

Recent and pending changes

• Public Law 2025, chapter 718 (LD 2200): signed into law April 15, 2026; effective July 29, 2026; applies to agreements entered into or renewed on or after that date.
• Public Law 2025, chapter 738, Part C, section 39: amends 599-A(5) effective January 1, 2027, exempting only allopathic and osteopathic physicians from the delayed-effect rule; the Revisor marks it as conflicting with chapter 718.
• Public Law 2023, chapter 118: added the veterinarian rule. The 400% of poverty level ban dates from Public Law 2019, chapter 513.

We did not verify whether bills affecting non-competes have been filed for the next legislative session.

The FTC rule and Maine non-competes

The FTC's nationwide non-compete rule never took effect. A federal court in Texas set it aside on August 20, 2024 (Ryan, LLC v. FTC, No. 3:24-CV-00986-E, N.D. Tex.), the FTC voted on September 5, 2025 to dismiss its appeals, and the FTC removed the rule from the Code of Federal Regulations on February 12, 2026. The FTC still acts case by case, for example approving a final order on June 22, 2026 that required a pest-control company to stop enforcing non-competes. Maine law governs Maine agreements; more detail is in FTC non-compete ban struck down and our non-compete laws by state guide.

If you have been asked to sign

Maine's notice rules give you at least 3 business days with the agreement. Whether a specific covenant holds up depends on your wages, your profession and ownership stake, the date it was signed or renewed, and how far its time, place and activity limits reach. A lawyer licensed in Maine can review the agreement against 599-A, and the Maine Department of Labor can answer questions about the bans and notice rules.

Related

• Non-compete laws by state
• Maine trade secret laws
• Maine severance pay laws
• Maine health care non-compete law (LD 2200)
• FTC non-compete ban struck down

Disclaimer: This article provides general legal information about Maine non-compete law under 26 M.R.S. 599-A and 599-B, not legal advice. The information was last verified on 2026-10-08. For advice about a specific agreement, contact the Maine Department of Labor, a legal aid office, or a lawyer licensed in Maine.

Last updated: 2026-10-08.

Frequently Asked Questions

Are non-competes enforceable in Maine?

Some are. Under 26 M.R.S. 599-A a non-compete is enforceable only to the extent it is reasonable and no broader than necessary to protect trade secrets, confidential information or goodwill, and it is banned outright for workers at or below 400% of the federal poverty level, non-owner veterinarians and, for agreements entered into or renewed on or after July 29, 2026, non-owner health care practitioners.

What is the salary threshold for a non-compete in Maine?

An employer may not require or permit a non-compete with an employee earning wages at or below 400% of the federal poverty level (26 M.R.S. 599-A(3)(A)). The statute does not state a dollar amount; the poverty line it uses is revised every year.

Did Maine ban non-competes for doctors and nurses?

Partly. Public Law 2025, chapter 718 (LD 2200) bars non-competes with health care practitioners employed by an entity in which they have no ownership interest, for agreements entered into or renewed on or after July 29, 2026. It is not a blanket ban: practitioners with an ownership interest can still sign one, and it must recognize a patient's right to choose a practitioner.

How much notice does a Maine employer have to give before a non-compete?

The employer must disclose before the job offer that a non-compete will be required, and must provide a copy at least 3 business days before the agreement must be signed (26 M.R.S. 599-A(4)).

When does a Maine non-compete start to apply?

Its terms do not take effect until after one year of employment or six months from signing, whichever is later (26 M.R.S. 599-A(5)). Health care practitioners are exempt from that waiting period under chapter 718. A second law, Public Law 2025, chapter 738, amends the same subsection effective January 1, 2027 with wording that exempts only physicians; the Revisor marks the two versions as a conflict.

Is a Maine non-compete enforceable if I am fired?

Section 599-A does not treat fired or laid-off employees differently from those who resign. The same reasonableness test and statutory bans apply either way.

What happens to a Maine employer that violates the non-compete law?

Violating the ban in subsection 3 or the notice rules in subsection 4 is a civil violation, for which a fine of not less than $5,000 may be adjudged (26 M.R.S. 599-A(6)). The Maine Department of Labor enforces the section.

Are no-poach agreements between employers legal in Maine?

No. Under 26 M.R.S. 599-B an employer may not enter into, enforce or threaten to enforce an agreement with another employer that restricts soliciting or hiring each other's employees or former employees; a fine of not less than $5,000 may be adjudged.

Does the FTC non-compete ban apply in Maine?

No. A federal court set the FTC rule aside on August 20, 2024, and the FTC removed it from the Code of Federal Regulations on February 12, 2026, so Maine agreements are governed by 26 M.R.S. 599-A.