Effective July 13, 2026, Maine’s L.D. 2200, An Act Relating to Noncompete Agreements Between Employers and Health Care Practitioners, expands the state’s regulation of noncompete agreements in the health care sector. The law applies to all noncompete agreements entered into or renewed on or after July 13, 2026.
Existing Restrictions Already Limited Certain Noncompetes
Prior to this legislation, Maine law prohibited employers from requiring or permitting noncompete agreements with:
- Employees earning wages at or below 400% of the federal poverty level; and
- Certain veterinarians employed by veterinary facilities in which they did not hold an ownership interest.
The new law expands this prohibition to include health care practitioners employed by entities in which they do not have an ownership interest. As a result, Maine limits the circumstances under which health care employers may rely on noncompete agreements for employed practitioners.
Definition of Health Care Practitioner
The legislation creates a new definition of “health care practitioner,” encompassing individuals qualified or licensed under Maine law to provide health care services in the state.
Patient Choice Must Be Protected
The law also provides that any noncompete agreement involving a health care practitioner that remains enforceable under Maine law must recognize an individual’s right to choose their own health care practitioner.
This requirement reflects a legislative effort to preserve patient access and continuity of care when practitioners change employers.
Changes to Waiting Period Rules
Maine generally requires noncompete agreements to remain ineffective until the later of:
- One year after employment begins; or
- Six months after the agreement is signed.
Prior law exempted certain licensed physicians from that waiting-period requirement. Effective July 13, 2026, that exemption is broadened to apply to health care practitioners more generally.
Employers Impacted
The amendments are particularly relevant to:
- Hospitals and health systems;
- Physician groups and medical practices;
- Behavioral health providers;
- Long-term care organizations;
- Clinics and outpatient facilities; and
- Other health care employers that utilize restrictive covenants.
Employer Takeaway With the law taking effect July 13, 2026, Maine health care employers should review any noncompete agreements that may be entered into or renewed after that date. Employers should evaluate whether existing restrictive covenant programs comply with the new protections for health care practitioners and consider alternative tools, such as confidentiality, non-solicitation, and patient transition provisions, to protect legitimate business interests.