Maine Restricts Noncompetes For Health Care Practitioners

On April 15, 2026, Governor Janet T. Mills signed into law “An Act Relating to Noncompete Agreements Between Employers and Health Care Practitioners,” L.D. 2200 (the “Amendments”).

The Amendments significantly restrict noncompetes for health care practitioners in the State of Maine.  The Amendments apply to all noncompete agreements entered into, or renewed on or after, the Amendments’ effective date of July 13, 2026 (the “Effective Date”).

Overview of the Amendments

The Amendments build on Maine’s existing noncompete statute (the “Maine Noncompete Law”), which permits post-employment noncompete agreements only to the extent that they are reasonable and are no broader than necessary to protect the employer’s trade secrets, confidential information, or goodwill.  In addition, the Maine Noncompete Law prohibits noncompetes for certain classifications of employees, including those earning wages at or below 400% of the federal poverty level and veterinarians employed in a veterinary facility in which the veterinarian does not have an ownership interest in the practice. 

As of the Effective Date, the Amendments will prohibit noncompetes with health care practitioners employed by an entity in which the health care practitioner does not have an ownership interest.  The Amendments define “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 Amendments clarify that, to the extent that a noncompete for a health care practitioner is enforceable under the Maine Noncompete Law, the noncompete must recognize an individual’s right to choose that individual’s own health care practitioner.  In other words, a noncompete for a health care practitioner must: 1) be reasonable and no broader than necessary to protect a legitimate business interest, 2) apply to a health care practitioner employed by an entity in which the practitioner has an ownership interest, and 3) recognize an individual’s right to choose that individual’s own health care practitioner.  

The Amendments do not alter the Maine Noncompete Law’s disclosure and notice requirements.  Thus, an employer shall notify a health care practitioner (who has an ownership interest in the practice) of a noncompete requirement and provide a copy of the noncompete agreement not less than three business days before the employer requires the noncompete to be signed.

The Amendments clarify that health care practitioners are not subject to Section 5 of the Maine Noncompete Law’s effective date requirements for noncompete agreements.  Pursuant to Section 5, in general, 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 the date the noncompete was signed.  As of the Effective Date of the Amendments, however, this requirement will not apply to noncompetes with health care practitioners.   

Employer Takeaways

These Amendments reflect a nationwide trend toward restricting the enforceability of noncompetes, including a growing trend of imposing additional restrictions against noncompetes as applied to health care practitioners.

With the Effective Date less than three months away, employers with health care employees in Maine should take proactive steps now to mitigate risk:

Revise Noncompete Agreements & Practices

• Employers should not enter into a noncompete with a health care practitioner in Maine unless that health care practitioner has an ownership interest in the practice; and
• Employers who enter a noncompete agreement with a health care practitioner in Maine who has an ownership interest in the practice should ensure that the agreement complies with the Maine Noncompete Law’s notice requirements and that the noncompete is reasonable, narrowly tailored, and recognizes an individual’s right to choose that individual’s own health care practitioner. 

Employers with employees located in multiple jurisdictions should review our 50-State Noncompete Survey, including its HealthCare-Specific Exclusions/Restrictions, and consider working with counsel to draft a restrictive covenant agreement that complies with the law(s) applicable to their workforce.