Promote Keeping Workers in Maine
|Category:||Wage and Labor|
|Sponsor:||Representative John C. Schneck, House 126|
|Bill #:||LD 733|
UPDATE 6-28-19: This bill has been signed by Governor Mills. New chaptered law is here.
UPDATE: This bill has been removed from the Appropriations Table and awaits action by Governor Mills
This bill prohibits an employer from requiring or entering into a so-called noncompete agreement with an employee earning wages that are at or below 300% of the federal poverty level.
A noncompete agreement is defined as a contract or contract provision that prohibits an employee or prospective employee from working in the same or a similar profession or in a specified geographic area for a certain period of time following termination of employment. If an employer requires a noncompete agreement for a position of employment, the employer must disclose that requirement in any advertisement for that position, and an employer must provide an employee or prospective employee with a copy of a noncompete agreement at least 3 business days before requiring that employee or prospective employee to sign the agreement.
An employer that violates this law commits a civil violation for which a fine of not less than $5,000 may be adjudged. The Department of Labor is responsible for enforcement of the law. The terms of a noncompete agreement, except for a noncompete agreement with a physician, are not in effect until after an employee has been employed with the employer for at least one year or a period of 6 months from the date the agreement was signed, whichever is later.
The bill also prohibits a restrictive employment agreement between 2 or more employers that prohibits or restricts one employer from soliciting or hiring another employer's employees or former employees.