An Act To Promote Keeping Workers in Maine

CONCEPT DRAFT SUMMARY

This bill is a concept draft pursuant to Joint Rule 208.

This bill proposes to regulate the use of so-called noncompete agreements, which are contracts entered into by an employee prohibiting the employee from working in the same or a similar profession within a time certain after leaving employment with the employer and within a specified geographical area. This bill would restrict the use of noncompete agreements by public and private employers by:

1. Prohibiting their use for low-wage employees;

2. Requiring employers to include in any advertisement for a job a statement that the person hired will be required to sign a noncompete agreement;

3. Requiring employers to notify prospective employees of the noncompete requirement and provide a copy of the noncompete agreement before extending a job offer;

4. Requiring employers to provide additional compensation to those employees who agree to sign a noncompete agreement;

5. Restricting the use of noncompete agreements to those situations when they are necessary to protect trade secrets or confidential information held by that employer;

6. Limiting the duration of noncompete agreements so that they would have to be renegotiated and agreed to after a certain period of time; and

7. Allowing an employee harmed by the unlawful use of a noncompete agreement to bring suit against the employer and, if the employee prevails, be awarded damages, attorney's fees and court costs.