On April 15, 2026, Governor Janet T. Mills signed into law L.D. 2200, entitled “An Act Relating to Noncompete Agreements Between Employers and Health Care Practitioners” (the “Act”). The Act significantly limits noncompetition agreements for doctors, nurses, and other licensed health care workers in Maine by expanding Maine’s existing noncompete statute (26 M.R.S.A. § 599-A), which permits post-employment noncompete agreements only to the extent that they are reasonable and no broader than necessary to protect the employer’s trade secrets, confidential information, or goodwill.
Maine’s current noncompete framework
Maine currently regulates noncompetition agreements under 26 M.R.S.A. § 599‑A, which provides the standards for an enforceable noncompete in Maine and creates exceptions and protections for certain employees. In particular, § 599‑A includes the following regulations:
- Bans noncompetes for employees earning wages at or below 400% of the federal poverty level;
- Bans noncompetes for veterinarians (unless they have ownership interest in the practice);
- Requires employers to disclose that a noncompete will be required prior to issuing a job offer and requires employers to provide a copy of a noncompete at least three days before it must be signed;
- Delays the effective date of noncompetes for six months after signing or one year after the start of employment, whichever is later (except for a noncompete agreement between an employer and an allopathic physician or an osteopathic physician); and
- Provides that an employer that violates the statute commits a civil violation for which a fine of not less than $5,000 may be imposed and grants the Department of Labor responsibility to enforce the statute.
Summary of the Act
The new Act, which will amend Section 599-A, was driven by concerns that noncompete clauses in health care employment contracts were limiting health care providers’ ability to practice and were creating “health care deserts” in Maine where sufficient numbers of health care practitioners were not available to serve the community.
The Act adds to the noncompete statute a prohibition on noncompetes with “health care practitioners” employed “by an entity in which that health care practitioner does not have an ownership interest.” The Act defines “health care practitioner” as “an individual qualified or licensed under state law to perform or provide health care services to persons in the State.” In addition, the Act provides that, to the extent that a noncompete for a health care practitioner is enforceable under the Maine statute, the “noncompete agreement between an employer and a health care practitioner that is enforceable under this subsection must recognize an individual’s right to choose that individual’s own health care practitioner.” Taken together, under the Act, a noncompete for a health care practitioner in Maine must:
- be reasonable and no broader than necessary to protect one or more legitimate business interest,
- apply to a health care practitioner employed by an entity in which the practitioner has an ownership interest, and
- recognize an individual’s right to choose that individual’s own health care practitioner.
The Act, moreover, does not alter the Maine noncompetition statute’s disclosure and notice requirements, including that an employer must disclose prior to an offer of employment that acceptance of a noncompete agreement will be required, and provide a copy of the noncompete agreement not less than 3 business days before the employer requires the agreement to be signed.
Finally, the Act provides that health care practitioners are not subject to Section 5 of 26 M.R.S.A. § 599-A’s effective date requirements for noncompete agreements, which provides that the terms of a noncompete do not take effect until the later of one year after the employee’s start of employment with the employer or six months after the date the noncompete was signed. Under the Act this requirement does not apply to noncompetes with health care practitioners.
Through its interdisciplinary team of attorneys across health care, labor and employment, and other areas, Bernstein Shur remains at the forefront of the Maine legal landscape—and is in the room as many of these key issues are being developed. We welcome the opportunity to connect with your organization to discuss how Bernstein Shur may assist you in your legal, compliance, and advocacy needs.
Adam R. Prescott is a shareholder and strategic business advisor who counsels organizations of all sizes — from closely held Maine businesses to regional health care providers — on complex transactions, financial restructuring, Chapter 11 and Subchapter V reorganizations, and commercial litigation. He can be reached at [email protected].
Tracy J. Roberts is a Senior Counsel and dual-certified health care compliance and privacy attorney who draws on her background as a former health system executive to advise highly regulated organizations on compliance program development, HIPAA and privacy matters, regulatory risk, and health care transactions. She can be reached at [email protected].
Anne-Marie L. Storey is a leading Labor and Employment attorney with more than two decades of experience who advises Maine employers on all aspects of workplace law, including compliance, risk management, employee relations, investigations, and litigation. She can be reached at [email protected].