In order to limit the application of such agreements between franchisors and franchisees, the broad language of the ban will affect other contractual agreements, such as standard agreements between staff agencies and their clients, where clients must pay a fee when they decide to directly recruit staff from a staff agency.  The provisions of the Deferred Entry in Non-Competition Agreements Act do not apply to allopathic or osteopathic physicians. On June 28, 2019, Governor Mills L.D. 733, “An Act to Promote Keeping Workers in Maine,” was signed into law. The law will impose significant new restrictions on competition restrictions in Maine. The law prohibits employers from entering into “restrictive employment contracts” between themselves. A “restrictive employment contract” is an agreement between two or more employers, “including a franchise or subcontract,” which “prohibits or prevents an employer from requesting or hiring employees or former employees of another employer.” Unlike the Federal Agreements Act, which prohibits “naked” non-poaching agreements between employers, the law does not provide an exception for non-poach agreements that support legitimate commercial cooperation. This part of the law is intended to combat the practice of fast food franchisors of including poaching-free clauses in franchise agreements. However, it prohibits a wide range of less controversial practices, such as the inclusion of the poaching-free language in joint venture agreements or staffing of business service contracts. L.D. 733 first notes that “agreements on cartels are contrary to public policy” and are applicable only to the extent that they are reasonable and are not broader than the protection of trade secrets, confidential information and/or an employer`s value. Maine defines a “non-competition agreement” as a “contractual or contractual provision prohibiting a worker or potential worker from working in the same occupation or in a specified geographic area for a specified period after termination of employment.” First, employers cannot apply any non-competition clause with workers, who earn less than 400% of the federal poverty line [Editor`s note: Based on the federal government`s poverty policies for 2019, which amount to about $50,000 for a household of one person, $67,640 for a two-person household, $85,320 for a household of three and $103,000 for a household of four.
Do you have a bigger house? Look at the guidelines for larger households.]. This reflects the political belief that low-income workers have less influence in negotiating these agreements. The new law applies to non-competition prohibitions that were concluded or extended after September 18, 2019. Therefore, all companies that employ staff in Maine should review their non-competition agreements and boarding policies to ensure that they comply with the new status. Under a non-competition clause, an employee agrees not to work for her employer`s competitors for a certain period after the end of her activity.