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New Restrictions on Non-Compete Agreements Take Effect in Maine and New Hampshire.

New Restrictions on Non-Compete Agreements Take Effect in Maine and New Hampshire

September 16, 2019

On September 18, 2019, Maine’s new law limiting an employers’ use of non-compete agreements will take effect.  The law prohibits employers from entering into new non-compete agreements with employees in the state earning at or below 400% of the federal poverty level (400% of the federal poverty level is currently $49,960).

In addition, the law requires that employers not only disclose to an applicant prior to an offer of employment that the applicant will be required to sign a non-compete agreement, but also to provide a copy of the non-compete agreement to the new employee at least three business days before the employer requires the employee to sign the agreement.  Notably, the law also prohibits an employer from enforcing the non-compete agreement until the later of one year of employment or six months after the agreement was signed.  Finally, the law prohibits no-poach agreements between employers.

New Hampshire’s new law took effect on September 8, 2019.  The law prohibits an employer from requiring an employee who makes 200% or less of the federal minimum wage (which would translate to $14.50/hour under current law) to sign a non-compete agreement.  New Hampshire already required employers to provide a copy of the non-compete agreement to any potential employee prior to the employee’s acceptance of an offer of employment.

If you have any questions regarding these new laws or other employment matters, please contact Peter Bennett (pbennett@thebennettlawfirm.com) or Rick Finberg (rfinberg@thebennettlawfirm.com).

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