Maine: New restrictions apply to non-compete agreements for healthcare practitioners

At a glance

• Maine’s new legislation, effective July 13, 2026, limits the use and enforcement of non-compete agreements for healthcare practitioners unless they have an ownership interest in the employing organization.
• The definition of healthcare practitioner covers individuals licensed or qualified under Maine law to provide healthcare services, including nurses, therapists, physician assistants, and other clinical professionals.
• Employers may continue to use non-compete agreements with practitioner-owners, but any restrictions must preserve patients’ right to choose their healthcare provider.
• The amendments expand an existing exemption from Maine’s delayed-effectiveness rules for noncompete agreements from physicians to healthcare practitioners generally.
• Employers may wish to review existing restrictive covenant arrangements, assess ownership status among affected workers, and consider alternative protections, such as confidentiality and non-solicitation provisions.

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Maine has enacted new restrictions on noncompete agreements for healthcare practitioners, effective July 13, 2026. Signed into law in April 2026, the legislation limits the use and enforcement of the agreements.

The amendments modify Maine’s existing non-compete framework, which generally permits these restrictions only when they are reasonable and no broader than necessary to protect legitimate business interests, such as confidential information, trade secrets, or goodwill. Existing notice, advance disclosure, wage threshold, and penalty requirements remain in place.

Under the new law, noncompete agreements entered into or renewed on or after July 13, 2026 will generally be unenforceable against healthcare practitioners unless the individual holds an ownership interest in the employing organization. The legislation defines 'healthcare practitioner' to include individuals who are licensed or otherwise qualified under Maine law to provide healthcare services.

Even where a practitioner has an ownership interest and a noncompete agreement remains permissible, the agreement must preserve a patient’s ability to choose their own healthcare provider.

The amendments also modify an existing exception to Maine’s rules governing the effective date of noncompete agreements. Previously, certain timing requirements did not apply to allopathic and osteopathic physicians. The new legislation extends that exception to healthcare practitioners more generally. Qualifying noncompete agreements involving covered practitioners will not be subject to the statutory requirement that restrictions take effect only after the later of one year of employment or six months following execution of the agreement.

Employers that engage healthcare practitioners in Maine may wish to review existing restrictive covenant arrangements and identify which, if any, practitioners have ownership interests. Employers may also wish to consider the effects of renewing, amending, or replacing existing agreements, as post-effective-date renewals could cause previously enforceable restrictions to become subject to the new rules.

Given the limitations on noncompete protections for covered practitioners, employers may wish to consider alternative safeguards, including confidentiality provisions and non-solicitation clauses, while recognizing that patients retain the right to choose their healthcare provider. Organizations may also wish to consider updating template agreements and internal processes to support compliance with the new statutory requirements.