What Employers Need to Know about the New Noncompetition Law in Maine
On June 28, 2019, Maine Governor Janet Mills signed a bill into law that significantly limits an employer's use of noncompetition agreements; i.e., an agreement that prohibits an employee from working in the same or a similar profession or in a specific geographic area for a certain period of time following termination of employment. The law does not apply to agreements that restrict a former employee's ability to solicit customers or co-workers nor does it restrict an employer's right to protect its confidential information. The new law also prohibits agreements between employers not to solicit each other’s employees.
Limitations on the Use of Noncompetition Agreements
Prohibition on Agreements Between Employers Not to Solicit or Hire Each Other's Employees
We anticipate employers will need to update their current noncompetition agreements to comply with this law. Moreover, the prohibition of agreements between employers not to solicit each other’s employees may have significant impacts on businesses that engage temporary workers and consultants.
If you have any questions on what this new law means for your company and how to approach updating your noncompetition agreements, employee leasing agreements, and consulting agreements, please contact attorney Robert Brooks or another member of Verrill’s Labor & Employment Group.
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