An Act To Promote Keeping Workers in Maine
Sec. 1. 26 MRSA c. 7, sub-c. 13 is enacted to read:
SUBCHAPTER 13
NONCOMPETE AGREEMENTS AND RESTRICTIVE EMPLOYMENT AGREEMENTS
§ 880. Noncompete agreements
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.
§ 880-A. Restrictive employment agreements
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.
| 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 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 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.