Maine’s Noncompete Statute is Reshaped for Health Care Workers: What You Need to Know

Employers of individuals who are licensed under state law to perform, or provide, health care services in the State of Maine should be prepared for the upcoming July 13, 2026, effective date of LD 2200, an Act Relating to Noncompete Agreements Between Employers and Health Care Providers. In April 2026, Governor Mills signed L.D. 2200 (enacted as Public Law Chapter 718), amending Maine’s noncompete statute, 26 M.R.S. § 599-A, with health care workers squarely in mind.

As many of you may recall, Maine’s non-compete statute was enacted in 2019 and amended in 2023 and set forth that non-compete agreements are “contrary to public policy” and enforceable only when they are reasonable and no broader than necessary to protect a legitimate business interest — trade secrets, confidential information, or goodwill. The statute also already carried guardrails employers know well:

• Wage floor. Employers can’t require a noncompete from anyone earning at or below 400% of the federal poverty level.
• Notice and disclosure. Employers have to flag the noncompete requirement before making an offer, and give the employee a copy at least three business days before they sign.
• Delayed start. A noncompete generally doesn’t take effect until after one year of employment or six months from signing, whichever is later.
• Penalties. Violating the prohibited-worker or notice rules is a civil violation carrying a fine that may run to at least $5,000, enforced by the Maine Department of Labor.

The new amendments, in a nutshell, will restrict the ability to have, or enforce, non-compete agreements with health care practitioners unless the health care practitioner has an ownership interest in the employer.

Under the statutory amendment, “health care practitioner” is any individual qualified or licensed under state law to perform or provide health care services to people in Maine. That’s a deliberately broad net. It isn’t limited to physicians — it reaches nurses, physician assistants, therapists, technicians, and other licensed clinical staff. If someone needs a Maine license or qualification to deliver care, assume they’re covered. Also, recognize that this doesn’t just cover health care employers, but any employer who employs a health care practitioner. In practical terms, if the Company-employed clinicians (health care practitioners) do not hold equity in the company, a non-compete agreement will not be enforceable if entered after this statute takes effect. Even if a health care practitioner does hold equity, any noncompete agreement entered into with the employee must recognize an individual’s right to choose their own health care practitioner.

As to additional amendments, previously the rule delaying when a noncompete takes effect had an exception only for allopathic and osteopathic physicians. The amendment broadens that exception to cover health care practitioners generally. Accordingly, if you have a noncompete agreement with a health care practitioner that meets the requirements of the statute or which was entered into prior to July 13, 2026, that agreement would not be governed by the longevity requirements (the longer of six months from the signing of the agreement or one year of employment). Further, these new rules apply to all noncompete agreements entered into or renewed on or after the law’s effective date.  

Accordingly, any entities that currently employ health care practitioners in Maine (or plan to in the future) should inventory existing non-competes and pull every agreement that binds a clinical employee. Flag which of those people hold an ownership interest and which do not, as this data is what is going to be relevant moving forward. For employed practitioners without equity, a noncompete is no longer a tool you can count on, and you should consider other protections that you can put in place such as confidentiality agreements and non-solicitation provisions (understanding that patients will be able to choose their health care practitioner).

In addition to reviewing agreements that are currently signed, planning for the future is also important. Employers should also revise standard agreements to: (a) carve out non-owner practitioners; (b) include the patient-choice language for any practitioner noncompete you do use; and (c) keep the existing disclosure, three-business-day notice, and delayed-effective-date mechanics intact. Additionally, if you have currently enforceable non-competes with health care practitioners, mind any renewals and contract-refresh activities which could end up making currently enforceable non-competes unenforceable.

For more information on this recent amendment or best practices for Maine non-compete statutes, contact Tawny Alvarez or another member of Verrill’s labor and employment practice group.