Employee Restrictive Covenant Agreement
Cover Terms
The terms below are incorporated into and form part of this agreement.
| Employer | [Legal name of the employer] |
| Employee | [Full legal name of the employee] |
| Employee Title / Position | |
| Effective Date | [Effective date of this agreement. In Maine the signing date starts the six-month half of the delayed-effectiveness clock, and the date the agreement is entered into or renewed determines whether the L.D. 2200 health-care-practitioner restriction reaches it, so the date carries unusual weight.] |
| Governing Law | Maine |
| Maine Statutory Gates | |
| 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 Wage Floor | 400% of the federal poverty levelState-law basis 400% of the federal poverty levelReference 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. |
| Non-Compete Effectiveness | the 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 Duration | Perpetual |
| Other Confidential Information Duration | 24 months |
| Employee Non-Solicitation | |
| Duration | 24 monthsMarket benchmark 24 months · modal of 67 filed agreementsReference only — not part of this agreement. 24 months matches the modal employee non-solicit term observed in benchmarked, publicly-filed employee agreements; 12 months is the common lighter alternative. Maine names non-solicitation agreements among the lighter alternatives its non-compete framework prefers, so a term sized to the actual workforce interest keeps the clause the lighter tool rather than a de facto hiring ban.
|
| Customer Non-Solicitation | |
| Duration | 12 monthsMarket benchmark 12 months · modal of 67 filed agreementsReference only — not part of this agreement. 12 months is the lighter side of the near-even 12/24-month split observed in benchmarked, publicly-filed employee agreements and is a common enforceable duration here. A Maine customer non-solicit is one of the statute's preferred alternatives but must still serve goodwill or confidential information and sweep no wider than that interest requires, and a shorter term supports that reasonableness showing.
|
| Non-Competition | |
| Duration | 12 monthsMarket benchmark 12 months · modal of 70 filed agreementsReference only — not part of this agreement. 12 months matches the modal non-compete term observed in benchmarked, publicly-filed employee agreements and is a common enforceable duration here. Maine sets no statutory maximum; duration is judged as a fact-intensive reasonableness question considering duration, geographic scope, and the nature of the protected interest, so a modest term supports that showing. The clock also does not begin until the Maine delayed-effectiveness period runs.
|
| Restricted Territory | the geographic area in which the protected goodwill or confidential information would actually be exploitedState-law basis the geographic area in which the protected goodwill or confidential information would actually be exploitedReference only — not part of this agreement. Tied to where the protected goodwill or confidential information would actually be exploited rather than the employer's footprint. Maine treats geographic scope as a fact-intensive reasonableness factor and enforces only what sweeps no wider than the protected interest requires. |
| Competitive Business | [Description of the business activities that constitute competition with the employer.] |
| Specified Competitors | |
| No Business with Covered Customers | |
| Duration | 12 months |
| Non-Investment | |
| Duration | 12 months |
| Non-Disparagement | |
| Duration | 24 months |
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 the legitimate business interests that 26 M.R.S. § 599-A(2) permits a Maine restrictive covenant to protect: Employer's trade secrets, Employer's confidential information that does not qualify as a trade secret, and Employer's goodwill. Each restrictive covenant in this agreement is supported by, and drawn no broader than reasonably necessary to protect, one or more of those interests. A covenant aimed only at ordinary competition sits outside the statutory frame.
“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 the Maine Uniform Trade Secrets Act, 10 M.R.S. § 1542, which 26 M.R.S. § 599-A cross-references, and under applicable federal law, including information that derives independent economic value from not being generally known to, and not being readily ascertainable through proper means by, another person who can obtain economic value from its disclosure or use (see the federal Defend Trade Secrets Act, 18 U.S.C. § 1839(3)).
2. Recitals and Legitimate Business Interest
Employer and Employee acknowledge that each restrictive covenant in this agreement is ancillary to a valid employment relationship and is included to protect one or more of the Protected Interests recognized by 26 M.R.S. § 599-A(2): Employer's trade secrets, Employer's confidential information that is not a trade secret, or Employer's goodwill. Employee will receive access to Employer's Confidential Information and Trade Secrets in the course of employment. Any non-compete in this agreement is included only because Employer has determined that the Protected Interest it serves cannot be adequately protected through an alternative restrictive covenant — including the non-solicitation and confidentiality covenants in this agreement — as contemplated by the alternatives presumption in 26 M.R.S. § 599-A(2). Each covenant is reasonable and no broader than necessary to protect the named interest, and the parties intend each covenant to be drawn within the scope Maine law permits at the outset rather than in reliance on any judicial narrowing.
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. Where this agreement includes a non-compete, Employer and Employee acknowledge that 26 M.R.S. § 599-A(4) imposes two statutory timing duties on Employer. First, Employer disclosed the non-compete requirement to Employee before making the offer of employment, on the Pre-Offer Disclosure Date listed in Cover Terms. Second, Employer provided Employee a copy of this agreement on the Agreement Delivery Date listed in Cover Terms, which is not less than three business days before the Required Signing Date, so that Employee had time to review the agreement and negotiate its terms or the terms of employment. Employee may consult an attorney during that period. The parties acknowledge that a signature collected on time does not cure a missed pre-offer disclosure or a shortened review window, because those duties sit upstream of execution.
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. This covenant is included solely to protect Employer's Protected Interests and is drawn no broader than reasonably necessary to protect them.
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. This covenant is included solely to protect Employer's goodwill and confidential information and is no broader than reasonably necessary to protect that interest, and it is limited to Covered Customers 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. This restriction is broader than non-solicitation because it applies even if the Covered Customer approaches Employee. The parties include this covenant only where a genuine goodwill or confidential-information interest supports it, and it is drawn no broader than reasonably necessary to protect that interest.
10. Non-Competition
During the Restricted Period, Employee must not engage in, be employed by, consult for, or have an active ownership interest in any Competitive Business within the Restricted Territory. This covenant is included solely to protect Employer's Protected Interests and is drawn no wider than necessary to protect them. This covenant does not apply, and Employer may not require or enter into it, if Employee earns wages at or below the Non-Compete Wage Floor listed in Cover Terms — 400% of the federal poverty level — under 26 M.R.S. § 599-A(3)(A). This covenant does not apply to a licensed veterinarian working in a veterinary facility unless Employee has an ownership interest in that facility (26 M.R.S. § 599-A(3)). Consistent with 26 M.R.S. § 599-A(5), the terms of this covenant do not take effect until the Non-Compete Effectiveness point listed in Cover Terms — the later of one year of Employee's employment with Employer or six months from the date this agreement was signed — except that, for an agreement between Employer and an allopathic physician or an osteopathic physician licensed under Title 32, chapter 48 or chapter 36, respectively, that delayed-effectiveness rule does not apply. Passive Public Holdings are permitted.
11. 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. This restriction primarily targets active or material ownership in private competitors. Passive Public Holdings are permitted. Because this covenant restrains active roles at and material participation in a Competitive Business, it functions as a non-compete under 26 M.R.S. § 599-A; it therefore applies only to protect Employer's Protected Interests, is drawn no broader than reasonably necessary to protect them, and is subject to the same wage-floor, veterinarian, and delayed-effectiveness limits stated in the Non-Competition section.
12. 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.
13. Health-Care Practitioner and Physician Notices
The delayed-effectiveness rule in 26 M.R.S. § 599-A(5) does not apply to a non-compete between Employer and an allopathic physician or an osteopathic physician licensed under Title 32, chapter 48 or chapter 36, respectively; for such a physician, the covenant is not held dormant by that timing rule. Where Employee is a health-care practitioner and this agreement is entered into or renewed on or after July 13, 2026, the non-compete is subject to the Maine health-care-practitioner noncompete restriction under 26 M.R.S. § 599-A and applies only to the extent that restriction permits.
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 .
14. No Employer-to-Employer No-Poach Terms
Nothing in this agreement is, or authorizes, a restrictive employment agreement between employers of the kind 26 M.R.S. § 599-B prohibits. No provision of this agreement, and no commercial arrangement it implements — including any franchise agreement or contractor or subcontractor arrangement — may restrict 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 .
15. 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. The parties acknowledge that a covenant Employee signed elsewhere may never have ripened under Maine's delayed-effectiveness analysis, or may purport to bind a worker Maine would not allow to be bound.
16. Notice to Future Employers and Other Third Parties
Employer may disclose the existence and terms of this agreement to a prospective employer or business associate of Employee only where a covenant in this agreement is enforceable against Employee under Maine law and Employer has a reasonable belief that Employee may breach that covenant. Any such notice must be factual and tied to an enforceable covenant. Nothing in this section authorizes any arrangement with the new employer about who may solicit or hire whom, because an employer-to-employer restriction of that kind is exactly what 26 M.R.S. § 599-B prohibits. Employee consents to a disclosure permitted by this section.
17. 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.
18. 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. Where the protected asset is a trade secret, actual or threatened misappropriation may be restrained or enjoined directly under the Maine Uniform Trade Secrets Act (10 M.R.S. § 1543). Any fee-shifting between the parties under this agreement is mutual and prevailing-party based rather than a one-way employer term.
19. 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 drawn in separable tiers so that an unenforceable covenant does not affect the others.
20. No Reliance on Judicial Reformation
This agreement does not rely on any savings or reformation clause to cure overbreadth. Each restrictive covenant is instead drawn to the restraint Employer actually intends to enforce, with the record tying its scope to a named Protected Interest, and as-applied review is treated as a discipline on enforcement requests rather than an invitation to draft broad.
Drafting Note Drafting to the restraint actually intended
Maine's as-applied review is not a license for a broad covenant. Because Maine assesses a non-compete only as the employer has sought to apply it, and whether a court will rewrite an overbroad covenant as drafted is unsettled, a covenant that outruns the interest it protects is exposed rather than assured of judicial narrowing . Lord supplies the limiting principle: the record must define the protected goodwill or business value first and then the scope reasonably necessary to protect it, so the restraint that holds is the one drawn to the interest the employer actually intends to enforce .
21. 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. Obligations under the Confidential Information and Trade Secret Protection section survive as long as the relevant information remains a trade secret. Because a non-compete may still be dormant when employment ends if the § 599-A(5) effectiveness period has not run, this section does not assume that every covenant was operative from the first day of employment. All other provisions survive to the extent necessary to enforce rights that arose during employment.
22. 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. The parties acknowledge that a covenant re-signed or re-papered in connection with a transaction restarts the six-months-from-signing half of the § 599-A(5) effectiveness clock, and that a renewal on or after July 13, 2026 brings a health-care practitioner's covenant within the Maine health-care-practitioner noncompete restriction under 26 M.R.S. § 599-A. This agreement is binding on and inures to the benefit of the parties and their respective heirs, successors, and permitted assigns.
23. 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 drawn to be read under 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.
24. 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; the parties acknowledge that an amendment that re-papers a non-compete restarts the six-months-from-signing half of the § 599-A(5) effectiveness clock and that a renewal on or after July 13, 2026 can carry the covenant into the Maine health-care-practitioner noncompete restriction under 26 M.R.S. § 599-A. 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 employer]
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: