Are Non-Competes Enforceable for Therapists and Behavioral Health Staff in Maine?
Since July 29, 2026, Maine has barred non-competes with health care practitioners who hold no ownership interest in their employer; 26 M.R.S. §599-A still governs everyone else through an income floor, notice rules, a waiting period (practitioners excepted since 2026) and a reasonableness test.
Updated October 7, 2026
Since July 29, 2026, Maine has barred employers from requiring or permitting a non-compete with a health care practitioner who has no ownership interest in the employer, under LD 2200 (Public Law 2025, chapter 718).
For employees the ban doesn’t reach, 26 M.R.S. §599-A still allows a non-compete — but only inside an income floor, notice rules, a waiting period (practitioners excepted since 2026) and a reasonableness test.
Rules vary by state and change
This guide explains federal rules and the state rules it names, as of the date above.
Licensure, supervision, payer and employment rules differ by state and are revised often, so confirm current requirements with your state board, Medicaid agency, labor department or employment counsel before you act on them.
It is general information, not legal advice.
The short answer for Maine
Maine answers this by statute — and since July 29, 2026, the statute sorts your staff into three groups.
- Health care practitioners with no ownership stake: no. LD 2200 (Public Law 2025, chapter 718), approved April 15, 2026, bars a Maine employer from requiring or permitting a non-compete with a health care practitioner who has no ownership interest in the employer.
- Practitioner-owners: not banned. The new subsection doesn’t reach them, though any remaining practitioner non-compete must recognize each individual’s right to choose their own practitioner.
- Everyone else: conditional. Outside the ban, 26 M.R.S. §599-A forbids non-competes at or below 400% of the federal poverty level and conditions the rest on notice, timing and reasonableness; since 2026, practitioners are excepted from the waiting period.
| Who you are hiring in Maine | Non-compete? |
|---|---|
| Health care practitioner with no ownership interest | No — agreements signed or renewed on or after July 29, 2026 |
| Health care practitioner who is an owner | Not barred by the new ban — must recognize the individual’s right to choose their practitioner |
| Employee at or below 400% of the federal poverty level | No — regardless of role |
| Everyone else | Yes, if disclosed pre-offer, delivered 3 business days before signing, past the waiting period, and reasonable |
The governing statute or case law
Maine’s rules are statutory, not judge-made: 26 M.R.S. §599-A declares noncompete agreements contrary to public policy, enforceable only to the extent they are reasonable and no broader than necessary to protect the employer’s trade secrets, confidential information or goodwill.
§599-A defines a noncompete agreement as a provision barring an employee or prospective employee from working in the same or a similar profession or a specified geographic area for a period after employment ends; client non-solicitation and confidentiality agreements sit outside it, treated as alternatives.
Four mechanical rules apply before reasonableness is even weighed:
- Income floor. A Maine employer may not require or permit a non-compete with an employee earning wages at or below 400% of the federal poverty level.
- Notice. You must disclose before making an offer that a non-compete will be required, and provide a copy at least 3 business days before requiring signature.
- Waiting period. As originally enacted, terms take effect only after one year of employment or 6 months from signing, whichever is later; the 2026 law changed only the exception.
- Penalty. Violating the low-wage ban or the notice rule is a civil violation with a fine of not less than $5,000; the Maine Department of Labor enforces the section.
This page is Maine only; the wider picture is in our guide to non-competes nationally.
Healthcare- and mental-health-specific rules
Maine now has a healthcare-specific ban: LD 2200 adds a ground to §599-A(3) — an employer may not require or permit a non-compete with a health care practitioner who has no ownership interest in the employer.
The definition does the work: a “health care practitioner” is an individual qualified or licensed under state law to perform or provide health care services to persons in Maine.
The text names no professions.
- Plainly covered: physicians and nurses — an employee psychiatrist or psychiatric-mental health nurse practitioner with no ownership stake cannot be asked to sign one.
- Not spelled out: whether licensed counselors, social workers, marriage and family therapists, psychologists and behavior analysts qualify — the text doesn’t say, and no guidance from the Maine Department of Labor has surfaced. Don’t assume either way; ask Maine employment counsel. Unlicensed behavioral health technicians and peer support staff raise the same question with less to lean on.
Two timing rules bound the ban.
It applies to agreements entered into or renewed on or after July 29, 2026 — the Legislative Digest’s date for non-emergency laws — so agreements signed before then are judged under the prior rules, and a renewal pulls one under the new ban.
And it replaced the physician exception to the one-year/six-month waiting period with one for all health care practitioners, so an owner-practitioner’s still-allowed non-compete takes effect without it.
When checked in October 2026, the Revisor’s online §599-A text still showed the pre-2026 wording — rely on the enacted LD 2200 text instead.
What courts require (time, area, legitimate business interest)
For the employees a non-compete can still cover, §599-A supplies the test a Maine court applies: reasonable, and no broader than necessary.
- Legitimate business interest. The statute names three — trade secrets, confidential information and goodwill. Tie the covenant to one, and to evidence you could show: a referral network, a program, goodwill in a caseload.
- The narrower tool comes first. A non-compete may be presumed necessary if the interest cannot be adequately protected by a nonsolicitation, nondisclosure or confidentiality agreement — draft and document those first.
- Time. Terms stay dormant until after one year of employment or 6 months from signing, whichever is later (practitioners excepted since 2026); no maximum duration surfaced in this research, so size the term to a provable interest.
- Area. The definition speaks of a specified geographic area; no statutory mileage rule surfaced in this research, so draw the radius from where your clients actually live and attend.
Client and employee non-solicitation clauses
Maine’s non-compete statute does not swallow non-solicitation clauses: the definition reaches covenants barring work in the same or a similar profession or a specified geographic area, and the statute treats non-solicitation, nondisclosure and confidentiality agreements as alternatives, not noncompetes.
Two distinctions keep you out of trouble:
- Your agreement with your own employee is not a pact with another employer. 26 M.R.S. §599-B bars Maine employers from entering into or enforcing no-poach agreements with other employers that restrict soliciting or hiring each other’s employees or former employees.
- No behavioral-health-specific non-solicit rule surfaced. This research found no Maine rule specifically addressing client non-solicitation clauses for behavioral health licenses, and it did not research how a Maine court would weigh a given clause; confirm with Maine employment counsel.
For drafting detail and the ethics-code duties behind these clauses, see our guide to non-solicitation clauses.
What Maine practices should do instead or in addition
The 2026 law makes the statute’s own preferences your default.
- Draft the narrower covenants first. §599-A may presume a non-compete necessary where a non-solicitation, nondisclosure or confidentiality agreement cannot adequately protect the interest — build the agreement around those and document why they fall short.
- Audit before you renew. The ban reaches agreements entered into or renewed on or after July 29, 2026 — a renewal that rolls an old clause forward falls under it.
- Rebuild the offer workflow around notice. For staff you may still covenant — above the 400% floor, outside the practitioner ban — disclose before the offer and deliver the agreement at least 3 business days before signature.
- Match each risk to its tool. Recouping supervision or training spend points to training repayment agreements instead; keeping clinicians at all points to clinician retention work that needs no enforcement.
Whatever the package, have Maine employment counsel read the final wording before an offer goes out — especially on whether your licenses count as “health care practitioners.”
Before a Maine clinician signs a restrictive covenant
- Decide whether the role is a health care practitioner with no ownership interest — for agreements signed or renewed on or after July 29, 2026, the non-compete is barred.
- Check the hire’s wages against 400% of the federal poverty level; at or below that line, Maine bans the non-compete regardless of role.
- Disclose the non-compete before making the offer, and deliver the agreement at least 3 business days before you require a signature.
- Draft the non-solicitation, nondisclosure and confidentiality terms first — the statute says a non-compete may be presumed necessary where they cannot adequately protect the interest.
- Do not enter a no-poach arrangement with another employer — §599-B prohibits it.
- Have employment counsel who practices in Maine review the wording, including whether the license you are hiring counts as a health care practitioner.
Questions employers ask
Does Maine’s 2026 law void the non-competes my practice already uses?
Not automatically.
The 2026 law applies to noncompete agreements entered into or renewed on or after July 29, 2026, so agreements signed before that date are judged under the prior rules.
The trap is renewal: an agreement renewed on or after that date falls under the new ban, which bars non-competes with health care practitioners who have no ownership interest in the employer.
Audit your templates and every renewal before an old clause rolls forward.
Is there a dollar figure for Maine’s 400%-of-poverty-level test?
Maine’s statute sets the test at 400% of the federal poverty level: an employer may not require or permit a non-compete with an employee earning wages at or below that line.
This page does not quote a dollar amount: the statute text this research relies on sets the test as 400% of the federal poverty level, not as a dollar figure.
Check the current federal poverty guidelines, and confirm with counsel how the wage test applies to salaried clinicians.
Can a BCBA in Maine still sign a non-compete?
It depends on a definition the statute doesn’t resolve.
Maine’s 2026 ban covers any “health care practitioner” — an individual qualified or licensed under state law to provide health care services — but the text lists no professions and does not say whether licensed behavior analysts count.
If they do, a BCBA with no ownership interest cannot be required to sign one under an agreement entered into or renewed on July 29, 2026 or later; if they don’t, the general rules apply, including the 400% income floor.
Confirm with Maine employment counsel.
What is the penalty for an improper non-compete in Maine?
An employer that violates §599-A’s low-wage ban or its notice rule commits a civil violation for which a fine of not less than $5,000 may be adjudged, and the Maine Department of Labor is responsible for enforcing the section.
Those rules sit alongside the reasonableness test a court applies to the covenant itself — skipping the income and notice steps is a violation in its own right.
Are non-solicitation clauses banned in Maine like non-competes?
No. Maine’s definition of a noncompete agreement covers covenants barring work in the same or a similar profession or a specified geographic area, and §599-A treats non-solicitation, nondisclosure and confidentiality agreements as alternative restrictive covenants rather than noncompetes.
Two related rules sit nearby: §599-B bars no-poach agreements between employers (a different instrument from a clause in your own employee’s contract), and this research found no Maine rule specific to behavioral health client non-solicits — have counsel review the clause.
Sources
- 26 M.R.S. §599-A — Noncompete agreements (Maine Legislature) (retrieved October 7, 2026)
- 26 M.R.S. §599-B — No-poach agreements (Maine Legislature) (retrieved October 7, 2026)
- L.D. 2200 (P.L. 2025, ch. 718), enacted text — 132nd Maine Legislature (retrieved October 7, 2026)
- L.D. 2200 Committee Amendment A summary — 132nd Maine Legislature (retrieved October 7, 2026)
- Maine Legislative Digest, 132nd Legislature, Second Regular Session (retrieved October 7, 2026)
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