Jessica JohnsonMaine's 2019 non-compete reform split the legal landscape in two. Before September 18, 2019, Maine courts evaluated non-competes under a reasonableness standard — broad agreements survived; narrow ones failed; and low-wage workers had no explicit statutory protection. After 2019, the calculus changed completely: non-competes are void for any employee earning below 400% of the federal poverty level, agreements presented without the mandated notice period are unenforceable, and the one-year maximum duration applies regardless of what the employer considers "reasonable." This article compares Maine's rules to the federal baseline and to key neighboring states to show where Maine sits on the national spectrum of restrictiveness.
Maine Non-Compete Law: Before and After 2019
The 2019 reform (P.L. 2019, ch. 316, codified at 26 M.R.S. § 599-A) introduced four structural changes:
| Element | Pre-2019 Maine | Post-2019 Maine (current) |
|---|---|---|
| Salary threshold | None — any employee could be bound | 400% of federal poverty level (~$60,240/year in 2026) |
| Duration maximum | "Reasonable" — courts often upheld 2-3 years | Explicit one-year cap, no exceptions |
| Notice requirement | None | 3 business days before offer or signing |
| Non-solicitation scope | Not separately addressed | Subject to same threshold and duration limits |
The salary threshold is the most consequential change. Roughly 40% of Maine workers earn below $60,240/year [U.S. Bureau of Labor Statistics, Maine, 2024]. For this group, any non-compete a current or prospective employer asks them to sign is automatically void — a court will not enforce it, and cannot reform or narrow it to make it enforceable.
Maine vs. Federal Law: The FTC Non-Compete Rulemaking Context
At the federal level, the Federal Trade Commission (FTC) proposed a near-total ban on non-competes in 2023, but the rule was blocked in federal court in 2024 (Ryan LLC v. FTC, N.D. Tex. 2024). As of 2026, there is no federal statute limiting non-compete agreements. Employers operating nationally must comply with state law only — and state law varies enormously.
Maine sits well to the left of center on the restrictiveness spectrum. A national comparison:
| Jurisdiction | Low-wage ban? | Duration cap | Notice requirement |
|---|---|---|---|
| Maine | Yes — 400% FPL (~$60,240) | 1 year | 3 business days |
| California | Full ban for all employees | N/A (void) | N/A |
| Minnesota | Full ban (effective 2024) | N/A (void) | N/A |
| New Hampshire | No explicit ban | Reasonableness test | None |
| Massachusetts | Ban below 150% min. wage | 1 year (preferred) | 10 days + consideration |
| Florida | No salary threshold | Reasonable (2 yr presumed) | None |
| Federal | No rule (FTC rule blocked) | No cap | No requirement |
Where Maine falls: Maine is more protective than most states but falls short of the full California/Minnesota ban. Employees earning above ~$60,240 in Maine can still be bound — but only for one year and only with proper advance notice.
For a detailed look at how Florida, which takes the opposite approach, handles these agreements, see Florida Non-Compete Agreements.
Who Can Be Bound: The 400% FPL Threshold in Practice
The salary threshold applies to total annual compensation from the employer — base salary, guaranteed bonuses, and commission draw, but not contingent commissions or overtime. In 2026, the 400% federal poverty level for a single individual is approximately $60,240/year [U.S. Department of Health & Human Services, 2025 FPL Guidelines].
Practical scenarios:
Scenario A — Retail manager, $52,000 base salary: This employee earns below the threshold. Any non-compete the employer asks them to sign is void under Maine law. The employer can still seek a non-disclosure agreement (NDA) to protect trade secrets, but the non-compete itself is unenforceable.
Scenario B — Software engineer, $95,000 salary: This employee is above the threshold. A non-compete is potentially enforceable if it does not exceed one year, was delivered three business days before the offer letter was signed, and is limited to a reasonable geographic scope and set of restricted activities. The employer must demonstrate a legitimate business interest — typically trade secrets or client relationships.
Scenario C — Sales representative with $45,000 base + uncapped commissions averaging $30,000/year: The threshold analysis applies to guaranteed compensation, not average total earnings. The $45,000 base falls below $60,240, and the variable commissions are not counted toward the threshold. The non-compete is void.
The three-business-day notice rule is equally rigid. An employer who presents a non-compete at a job offer meeting has technically violated the notice requirement if the employee signs immediately. The agreement must be sent in advance — before the interview, with the offer letter, or at minimum three clear business days before the employee's start date.
How Maine Courts Handle Non-Compete Enforcement
Maine courts apply a two-stage analysis to non-competes that clear the statutory threshold:
Stage 1 — Statutory compliance: Did the employer follow the notice requirement? Is the duration within one year? Is the employee above the 400% FPL threshold? If any statutory requirement fails, the court voids the agreement entirely. Maine does not apply "blue penciling" (reducing an overbroad term to make it enforceable) when the defect is a statutory threshold violation.
Stage 2 — Common-law reasonableness: For agreements that pass statutory compliance, courts examine whether the agreement is reasonable in scope of restricted activities and geographic area, whether the employer has a legitimate business interest (trade secrets, substantial investment in training, unique customer relationships), and whether enforcement would impose undue hardship on the employee.
In practice, Maine Superior Courts have been willing to issue preliminary injunctions enforcing narrow, time-limited non-competes against executives and engineers with access to genuine trade secrets. Broad agreements covering all "competitive activity" in all industries, without limitation, face skepticism.
The employer bears the burden of proof on every element of enforceability. An employee challenging a non-compete does not need to prove it is unenforceable — the employer must prove it is enforceable. This burden allocation is significant: in contested injunction hearings, employers who cannot quickly produce evidence of a legitimate business interest lose.
Effective Alternatives to Non-Competes in Maine
Because non-competes are void for a large share of Maine workers, employers who need genuine protection for trade secrets and client relationships should consider these lawful alternatives:
Non-disclosure agreement (NDA): An NDA protecting proprietary information, client lists, pricing data, and business strategies is enforceable without a salary threshold or duration cap. Unlike a non-compete, an NDA does not restrict where the employee can work — only what they can share. Maine courts broadly uphold well-drafted NDAs.
Non-solicitation of customers: A clause prohibiting the former employee from soliciting clients they served during employment is generally enforceable in Maine, even for lower-wage workers, as long as it is time-limited and narrowly tailored. However, post-2019, non-solicitation agreements are also subject to the 400% FPL threshold if the practical effect is to restrict competition — courts look at substance, not labels.
Non-solicitation of employees: A clause prohibiting the former employee from recruiting current staff is less restricted but must also be reasonable in scope and duration.
Garden leave: An employer who pays the full salary and benefits during the restricted period — essentially paying the employee not to work for a competitor — creates enforceable consideration and reduces the risk that courts will void the agreement as imposing undue hardship.
For a broader view of labor law protections in this region, including wage rules for Maine workers, see the Maine Labor Law dossier.
À retenir: Maine's non-compete regime since 2019 is one of the most restrictive in the Northeast. The 400% FPL salary threshold voids agreements for most hourly and mid-level salaried workers automatically. For those above the threshold, the one-year maximum and three-day notice rule impose structural limits that cannot be negotiated away. NDAs and carefully tailored non-solicitation agreements remain the most reliable tools for Maine employers seeking to protect competitive advantages.
The information in this article is provided for general informational purposes only and does not constitute legal advice. Maine non-compete laws evolve through court decisions and legislative action. Consult a licensed Maine employment attorney for guidance specific to your situation.
