§ 1. Governing Statutory & Common Law Authority
The enforceability of non-competition agreements in Maine is governed by 26 M.R.S.A. § 599-A (effective 2020). Non-competes unenforceable for employees earning below $63,840/year (2026). Must provide 3 business days notice. Cannot apply to first year of employment.
Recent legislative developments: 2020 statute established threshold and notice requirements.
§ 2. Compensation Threshold Requirements
Maine imposes a statutory compensation threshold for non-compete enforcement. Under current law, non-compete covenants are presumptively void for employees earning below the statutory minimum. 2026 threshold (400% of federal poverty level, adjusted annually). The threshold is $63,840/year — but whether your total compensation qualifies depends on how your state counts bonuses, commissions, and equity.
§ 3. Temporal Limitations on Post-Employment Restrictions
Maine limits enforceable non-compete duration to 12 months from separation. Statutory maximum of 1 year. Agreements exceeding this cap may be subject to judicial modification or voided entirely.
§ 4. Judicial Modification (Reformation Doctrine)
Maine follows the reformation doctrine, granting courts broad authority to rewrite overbroad non-compete terms. This is the most employer-favorable approach — even a poorly drafted agreement may be reshaped into an enforceable restriction.
§ 5. Consideration & Contract Formation
Must provide notice of the non-compete at least 3 business days before a job offer or commencement of employment. Whether this is legally sufficient — especially for agreements presented mid-employment rather than at hiring — is frequently contested.
§ 6. Effect of Involuntary Termination
Statute does not specifically carve out, but courts consider. Courts may apply heightened scrutiny when the employer initiated the termination, particularly for termination without cause or mass layoffs.
Practitioner Notes
Cannot apply to an employee within the first year of employment.