Are employers allowed to require employees to sign a non-compete agreement?

In Maine, employers are allowed to require their employees to sign a non-compete agreement. Non-compete agreements are documents in which an employee agrees not to work for a company that is in direct competition with their current employer. These agreements typically cover a specific geographic region, a set amount of time, and also specify what type of activities are off limits. These agreements are often used in order to limit an employee’s ability to use confidential information gained from their former position for the benefit of their new employer. However, these agreements are not enforceable if they are overly broad and impose an unreasonable restraint on an employee’s ability to work. In Maine, non-compete agreements must be: (1) necessary to protect legitimate interests of the employer; (2) reasonable in scope, time, and geography; and (3) not impose an undue hardship on the employee. Factors courts consider when evaluating whether an agreement is reasonable and enforceable include: the degree of competition the employee could create for the employer; the employee’s access to confidential information; and the duration of the agreement. Employers should always seek advice from a qualified attorney before requiring employees to sign a non-compete agreement. By doing so, employers can better ensure that any such agreement is enforceable under Maine law.

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Are employers allowed to require employees to sign a non-compete agreement?

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