Promote Keeping Workers in Maine

Last updated: Jun 14, 2019

Details about this bill
Category: Wage and Labor
Status: Appropriations Table
Sponsor: Representative John C. Schneck, House 126
Session: 129
Bill #: LD 733

Position:

Monitoring.

Summary:

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.