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Employee Restrictive Covenant Agreement

Cover Terms

The terms below are incorporated into and form part of this agreement.

Employer[Legal name of the entity that employs the employee]
Employee[Full legal name of the employee]
Employee Title / Position
Effective Date[Effective date of this agreement — the date the last party signs. It anchors the duration presumptions stated in Cover Terms.]
Governing LawMaine
Non-Compete Timing and Disclosure
Pre-Offer Disclosure Date[Date the employer disclosed to the employee or prospective employee that the position will require a non-compete. Maine requires disclosure of the non-compete requirement before the employer makes the offer of employment.]
Agreement Delivery Date[Date the employer delivered a copy of this agreement to the employee. Maine requires the copy to be provided not less than three business days before the required signing date so the employee has time to review and negotiate.]
Required Signing Date[Earliest date on which the employer requires the agreement to be signed. Maine requires this to be at least three business days after the delivery date.]
Non-Compete Effectivenessthe later of one year of employment or six months from signing (26 M.R.S. § 599-A(5))
State-law basis the later of one year of employment or six months from signing (26 M.R.S. § 599-A(5))

Reference only — not part of this agreement.

Tracks the Maine delayed-effectiveness rule verbatim in effect. The allopathic/osteopathic-physician carve-out from this timing rule is recited in the Non-Competition and physician-notice clauses rather than in the cover term.

Confidentiality
Trade Secrets DurationPerpetual
Other Confidential Information Duration24 months
Employee Non-Solicitation
Duration24 months
Market benchmark (based on 76 companies)HideShow
TermFrequency
12 months44.7%
Selected default24 months34.9%
18 months11.2%
Why this selected default?

Why is this the selected default?

24 months matches the modal employee non-solicit term observed in benchmarked, publicly-filed employee agreements; 12 months is the common lighter alternative. The Act sets no express duration presumption for the no-hire category, so the uniquely-essential scope limit does the primary category work; counsel should size the term to the workforce interest actually protected.

Customer Non-Solicitation
Duration12 months
State-law basis 12 months

Reference only — not part of this agreement.

12 months sits well inside the presumptively reasonable window for a current-customer non-solicit: eighteen months, or for as long as post-separation consideration is paid, whichever is greater. Counsel may extend toward eighteen months, or longer while post-separation consideration is paid, where the interest supports it.

No Business with Covered Customers
Duration12 months
State-law basis 12 months

Reference only — not part of this agreement.

12 months sits within the current-customer window. Because non-dealing has no category of its own, it is drawn to fit inside the current-customer non-solicit exception, and its duration tracks that category's presumption.

Non-Investment
Duration12 months
Non-Disparagement
Duration24 months
Maine statutory gate Non-Compete Wage Floor — 400% of the federal poverty level

Reference only — not part of this agreement.

Maine bans a non-compete for an employee earning wages at or below 400% of the federal poverty level. The dollar equivalent is indexed and updates each year, so the field references the statutory standard rather than a dollar figure that would go stale; counsel confirms the year-of-signing amount. (as of July 10, 2026)

Standard Terms

1. Defined Terms

“Competitive Business” means the business activities described in Cover Terms under Competitive Business.

“Confidential Information” means non-public information relating to Employer's business, including trade secrets, customer lists, pricing, business processes, technical data, and strategic plans, but excluding information that becomes public through no fault of Employee, information that arises from Employee's general skill and knowledge whether gained on the job or otherwise, information that is readily ascertainable to the public, and information Employee otherwise has a right to disclose as legally protected conduct.

“Covered Customers” means customers, vendors, referral sources, and business partners with whom Employee had material contact or for whom Employee had responsibility during the 12 months before termination of employment.

“Covered Employees” means employees with whom Employee worked or whom Employee managed during the 12 months before termination of employment.

“Passive Public Holdings” means ownership of securities of a publicly traded company representing less than five percent of any class of such company's securities, and interests in diversified mutual funds, index funds, and exchange-traded funds that may hold securities of a Competitive Business.

“Protected Interests” means Employer's trade secrets, confidential information that does not qualify as a trade secret, and goodwill. Each restrictive covenant in this agreement protects one or more of those interests and does not target ordinary competition.

“Restricted Period” means the duration specified in Cover Terms for each covenant, beginning on the date Employee's employment with Employer ends for any reason.

“Restricted Territory” means the geographic area described in Cover Terms under Restricted Territory.

“Solicit” means to directly or indirectly initiate contact with, approach, induce, or encourage any person or entity for the purpose of diverting business away from Employer, but does not include responding to general advertisements or unsolicited inquiries not initiated by Employee.

“Trade Secrets” means information that qualifies as a trade secret under applicable law.

2. Recitals and Protected Interest

Employer and Employee acknowledge that each restrictive covenant in this agreement is ancillary to a valid employment relationship and protects Employer's trade secrets, Confidential Information, or goodwill. Employee will receive access to Employer's Confidential Information and Trade Secrets in the course of employment.

Drafting Note The statutory legitimate-interest limit

A Maine non-compete is contrary to public policy and enforceable only to the extent it is reasonable and no broader than necessary to protect one of the statute's three legitimate business interests — trade secrets, non-trade-secret confidential information, or goodwill — so a covenant aimed at ordinary competition sits outside the statutory frame and does not hold . The common law measures the same restraint: it must sweep no wider than the interest at issue requires, and duration, geography, and the nature of the protected interest are weighed together as a fact-intensive question, so a term or radius carried from another form is measured against an interest it was never sized to .

Drafting Note Alternative covenants before a non-compete

Section 599-A(2) ranks the lighter tools first: a non-compete may be presumed necessary only where the legitimate business interest cannot be adequately protected through an alternative restrictive covenant, including a nonsolicitation, nondisclosure, or confidentiality agreement . A covenant that reaches for the non-compete without a record showing the alternatives were considered and found inadequate starts a step behind the statute's own ordering, and the alternatives carry their own ceiling — a confidentiality term still cannot bar the general skill and knowledge an employee acquired on the job .

3. Timing, Pre-Offer Disclosure, and Review Window

This agreement is effective as of the Effective Date listed in Cover Terms. Employer disclosed the non-compete requirement to Employee before making the offer of employment, on the Pre-Offer Disclosure Date listed in Cover Terms. Employer provided Employee a copy of this agreement on the Agreement Delivery Date listed in Cover Terms, at least three business days before the Required Signing Date. Employee had that period to review the agreement, negotiate its terms or the terms of employment, and consult an attorney.

Drafting Note Pre-offer disclosure and review-window timing

Maine's pre-offer disclosure and 3-business-day copy requirements sit upstream of signing, so a signature collected on time does not cure a missed disclosure or a shortened review window, and the covenant is exposed even where the executed agreement looks complete .

4. Confidential Information and Trade Secret Protection

Employee must treat all Confidential Information as strictly confidential. Employee must not use or disclose Confidential Information except as required to perform authorized job duties or with Employer's prior written consent. Employee's obligations regarding trade secrets continue for the period specified in Cover Terms under Trade Secrets Duration, which is intended to last as long as the information remains a trade secret. Employee's obligations regarding other Confidential Information continue for the period specified in Cover Terms under Other Confidential Information Duration. This section protects Employer's specialized, proprietary information and does not prohibit Employee from using the general skill and knowledge Employee acquired during employment, from disclosing information that is readily ascertainable to the public, or from disclosing information that Employee otherwise has a right to disclose as legally protected conduct.

Drafting Note Confidentiality alternative and its ceiling

A confidentiality covenant cannot do the work of a non-compete. Maine enforces protection for specialized, proprietary confidential information, but a clause that reaches the general skill and knowledge an employee acquired on the job crosses the line Bernier draws and forfeits that protection .

5. Permitted Disclosures and Protected Conduct

Nothing in this agreement prohibits Employee from: (a) reporting possible violations of law to any government agency, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Maine Human Rights Commission, the Occupational Safety and Health Administration, or any other federal, state, or local agency; (b) making disclosures protected under whistleblower provisions of any law; (c) discussing wages, hours, or other terms and conditions of employment as protected by applicable law, including Section 7 of the National Labor Relations Act, 29 U.S.C. § 157; (d) testifying truthfully in legal proceedings; (e) reporting or discussing unlawful employment discrimination occurring in the workplace or at work-related events, which 26 M.R.S. § 599-C(2) preserves and which no term of this agreement waives or limits; or (f) filing a sealed complaint in court using Confidential Information without liability. Pursuant to the Defend Trade Secrets Act (18 U.S.C. § 1833(b)), Employee may not be held criminally or civilly liable for disclosing a trade secret in confidence to a government official or attorney solely for the purpose of reporting or investigating a suspected violation of law, or in a sealed court filing.

6. Return, Deletion, and Certification of Company Property

Upon termination of employment, Employee must promptly return to Employer all documents, devices, files, credentials, and other materials containing or relating to Confidential Information. Where permitted, Employee must permanently delete electronic copies of Confidential Information from personal devices and accounts. Employee must certify compliance with this section in writing upon Employer's request.

7. Non-Solicitation of Employees

During the Restricted Period, Employee must not Solicit, recruit, hire, or attempt to hire any Covered Employee. This restriction is limited to initiating contact with or actively soliciting Covered Employees; it does not prohibit Employee from providing a professional reference upon request or from hiring a person who responds to a general advertisement not directed specifically at Employer's employees.

8. Non-Solicitation of Customers, Vendors, Referral Sources, and Business Partners

During the Restricted Period, Employee must not Solicit the business of any Covered Customer whom Employee actually served during the look-back period stated in Cover Terms.

9. No Business with Covered Customers

During the Restricted Period, Employee must not accept, service, or do business with any Covered Customer, regardless of whether Employee or the Covered Customer first initiated contact.

10. Non-Investment

During the Restricted Period, Employee must not acquire or hold any active ownership interest in, serve as a director, officer, manager, or advisor to, or have material economic participation in any Competitive Business. The wage-floor, veterinarian, and effectiveness exclusions stated in the Non-Competition section also apply to this covenant. Passive Public Holdings are permitted.

11. Non-Disparagement

During the Restricted Period specified in Cover Terms for Non-Disparagement, Employee must not make statements that are intended to or reasonably likely to disparage Employer, its officers, directors, employees, products, or services. This section does not restrict Employee from making truthful statements in legal proceedings, providing truthful testimony, making disclosures to government agencies, discussing wages, hours, or working conditions as protected by law, reporting or discussing unlawful employment discrimination as preserved by 26 M.R.S. § 599-C(2), or otherwise exercising rights protected by law.

12. Health-Care Practitioner and Physician Notices

The Non-Compete Covenant does not apply to Employee while Employee is a health-care practitioner excluded from non-compete restrictions by Maine law.

Drafting Note The health-care-practitioner restriction and its made-or-renewed trigger

L.D. 2200's health-care-practitioner restriction applies to every non-compete entered into or renewed on or after its July 13, 2026 effective date, so the trigger is the made-or-renewed date rather than when a dispute arises . A covenant for a health-care worker that is signed, re-papered, or renewed on or after that date is measured against the restriction even where the original agreement predated it, and because the codified text can lag the amendment on the published § 599-A page, a covenant validated only against the pre-amendment wage-floor and veterinarian rules can miss the restriction that now governs it .

13. No Employer-to-Employer No-Poach Terms

Nothing in this agreement authorizes any arrangement that restricts one employer from soliciting or hiring another employer's employees or former employees.

Drafting Note Employer-to-employer no-poach terms

Section 599-B's ban is not limited to a stand-alone no-poach contract: it reaches a no-solicit or no-hire term buried in a franchise, contractor, or subcontractor arrangement between two or more employers, and it bars entering into, enforcing, or threatening to enforce such a term alike . A violation is a civil violation carrying a fine of not less than $5,000 enforced by the Maine Department of Labor, so a commercial agreement that quietly restricts who may hire another employer's workers carries statutory exposure independent of any employee covenant .

14. No Conflicting Obligations

Employee represents that performing duties for Employer and complying with this agreement does not conflict with any prior agreement, court order, or legal obligation binding on Employee. Employee must promptly disclose to Employer any potential conflict that arises during employment.

15. Notice to Future Employers and Other Third Parties

Employer may disclose the existence and terms of obligations then in effect under this agreement to a prospective employer or business associate of Employee if Employer reasonably believes Employee may breach those obligations. Employer must not enter into any arrangement with another employer that restricts lawful hiring. Employee consents to a disclosure permitted by this section.

16. Tolling During Breach

The Restricted Period for each covenant runs from the date Employee's employment ends and is not extended by any period of breach.

17. Remedies

Employee acknowledges that a breach of this agreement may cause Employer irreparable harm for which money damages would be inadequate, and Employer may seek injunctive or other equitable relief in addition to any other remedies available at law. Any fee award under this agreement is available to the prevailing party.

18. Enforceability and Severability

If any provision of this agreement is found to be unenforceable, the remaining provisions remain in full force and effect. Each restrictive covenant in this agreement is intended to be independently enforceable and is separate from the other covenants.

19. Survival and Expiration of Each Covenant

Each restrictive covenant in this agreement survives the termination of Employee's employment for the Restricted Period specified in Cover Terms, subject to its applicable effectiveness date. Obligations under the Confidential Information and Trade Secret Protection section survive as long as the relevant information remains a trade secret. All other provisions survive to the extent necessary to enforce rights that arose during employment.

20. Assignment and Successors

Employee may not assign this agreement or any rights or obligations under it. Employer may assign this agreement to any affiliate, successor, or acquirer of all or substantially all of Employer's business or assets. This agreement is binding on and inures to the benefit of the parties and their respective heirs, successors, and permitted assigns.

21. Governing Law, Venue, and Dispute Process

This agreement is governed by the law listed in Cover Terms. For a worker who primarily resides and works in Maine, this agreement is governed by Maine law. Accordingly, for a Maine-based worker, this agreement is governed by Maine law and disputes over the enforceability of the covenants will be resolved in a Maine forum. All other disputes will be resolved in the courts of the Governing Law state, subject to non-waivable rights under applicable law.

22. Entire Agreement, Amendment, Waiver, and Electronic Signatures

This agreement constitutes the entire agreement between the parties regarding its subject matter and supersedes all prior agreements, understandings, and negotiations on this subject. This agreement may be amended only in writing signed by both parties. A party's failure to enforce any provision does not waive that party's right to enforce it later. This agreement may be executed in counterparts, including by electronic signature, each of which is an original.

Signatures

By signing this agreement, each party acknowledges and agrees to the restrictive covenant obligations above. Employee confirms having read and understood each provision, including the Cover Terms.

Employer

Employer: [Legal name of the entity that employs the employee]

Signature:

Signatory Name: [Full name of the authorized signatory signing for the employer]

Title: [Title of the authorized signatory signing for the employer]

Date:

Employee

Signature:

Print Name: [Full legal name of the employee]

Date:

Adapted from OpenAgreements Wyoming and Florida restrictive covenant templates. Licensed under CC BY 4.0.