Non-compete agreements have become a common tool for safeguarding interests in the world of business strategies; however, what if an alternative approach holds more promise? 

Often, the limitations imposed by traditional non-compete agreements can stifle opportunities, inhibiting professionals from generating income within a specific locale or timeframe. This is particularly significant in a state like Maine, where the presence of every skilled professional is crucial, and the rigid confines of non-compete agreements can hinder the ability to attract and retain these vital contributors to local industries.

In the latest episode of Private Practices in Maine, Michael dives further into the intricacies of non-compete agreements. With an eye toward alternative strategies for protecting a business’s interests, he highlights the potential effectiveness of non-solicitation or confidentiality covenants. In the conclusion of his series on the hidden implications of non-compete agreements, he explains some proposed, new, and existing laws in Maine, all centered around non-compete contracts. He also sheds light on obstacles that these laws present for employers considering non-competes and provides valuable insights on what they need to be conscious of.  

Some important points to note include:

  • Even if non-compete agreements are barred, confidentiality agreements will still be allowed. A confidentiality agreement protects something within a business developed with tremendous investment and is associated with goodwill. It could be any number of things, but it prevents someone from sharing that information with a new employer or business relationship. A non-compete prevents them from creating an income within a certain timeframe and/or geographic radius.
  • A non-solicitation covenant means you will not try to steal assets or relationships from someone you previously had an economic relationship with–like a former employer or business partner. A non-compete covenant is an enforceable promise that you won’t work in a competitive field with a former employer or business relationship for a specific period of time and/or within a certain geographic distance.
  • You should ask some questions before asking someone to sign a non-compete agreement. Those include:
    • Why do you need a rigid non-compete agreement that an employee cannot work within 50 miles of your business for the next 20 years?
    • What types of employees will you attract with such a rigid non-compete covenant?
    • How are you impacting your profession in your area with these agreements?

Michael’s knowledge of non-compete agreements, Maine state law, and how these laws impact businesses is unmatched.

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