As we reported at the end of February, Maine’s House of Representatives voted for a non-compete ban that would have invalidated virtually all such agreements in the state. In March, the Senate passed the bill, sending it to Governor Mills’s desk. Despite what looked like another victory for opponents of non-competes, Governor Mills vetoed the proposed ban, just as Governor Hochul of New York recently did.
In her veto, Governor Mills said that she vetoed the bill because she was not convinced that non-competes—which are already subject to statutory restrictions under Maine law—are a major problem. Mills further stated that non-competes can be “critical tools to prevent employees from taking unfair advantage of their former employers.” Notably, Mills also pointed out that the FTC is expected to announce a new rule regarding non-competes soon, and thus it would be “ill-advised” for Maine to weigh in at this time. While the legislature could overrule the governor’s veto with a two-thirds vote, it currently does not appear that proponents of the ban have the votes to do so.
So for now, reasonable non-competes are safe in Vacationland. We expect a final rule to be announced by the FTC any day now, so stay tuned on more developments on this page.
