Maine Law Non Compete Agreements

Maine Law Non-Compete Agreements: What You Need to Know

If you are an employee or employer in Maine, it is important to understand non-compete agreements and how they are regulated. A non-compete agreement is a legal contract that restricts an employee from working for a competing business or starting a competing business in the same industry for a certain period of time. These types of agreements are often used to protect a company`s trade secrets, confidential information, and client relationships.

However, in Maine, non-compete agreements are regulated by state law, and there are limitations to their use. Here`s what you need to know about Maine law non-compete agreements.

Who Can Be Subject to a Non-Compete Agreement?

Non-compete agreements are generally used for employees who are in positions that involve access to confidential information, trade secrets, or customer relationships. Maine law allows non-compete agreements to restrict employees who are:

– Executives, managers, and supervisors

– Salespersons who are primarily responsible for selling goods or services

– Employees who have access to confidential business information, such as trade secrets or customer lists

– Employees who provide services that are unique or extraordinary, such as professional athletes or entertainers

How Long Can a Non-Compete Agreement Last?

In Maine, non-compete agreements are generally limited to 12 months or less. The agreement must be reasonable in terms of its duration, geographic scope, and the type of work that is being restricted. The length of time that is reasonable will depend on the specific industry and the nature of the work being performed.

What Types of Limitations Can Be Included in a Non-Compete Agreement?

Maine law allows non-compete agreements to be limited in scope in several ways, including:

– Geographic scope: The agreement can restrict the employee from working in a specific geographic area, such as within a certain radius of the employer`s location.

– Type of work: The agreement can restrict the employee from working in a specific industry or performing certain types of work.

– Duration: The agreement can restrict the employee from working in a specific industry for a specific period of time.

What Happens if a Non-Compete Agreement is Deemed Unreasonable?

If a non-compete agreement is deemed unreasonable by a court, it may be invalidated or modified. In some cases, the court may even award damages to the employee who was restricted by the agreement. It is important for employers to ensure that their non-compete agreements comply with Maine law to avoid costly legal battles.

In conclusion, non-compete agreements can be a useful tool for businesses to protect their intellectual property and customer relationships. However, in Maine, they are subject to certain restrictions and limitations. Employers should consult with a qualified legal professional to ensure that their non-compete agreements comply with Maine law. Similarly, employees should seek legal advice if they are subject to a non-compete agreement.