Legal Question in Business Law in Maine

Maine law does not look particularly favorably upon non-compete agreements, as these agreements are viewed as constraints placed upon our free market economy. However, courts will oftentimes enforce non-compete agreements, so long as the agreements are reasonable in duration and scope. So, courts look not only to the length of the agreement term (in your case, two years) but also to geographic scope. Your first step would be to very carefully review the agreement to determine whether there is a geographic area defined. For example, most agreements will say that the former employee is prohibited from competing, directly or indirectly, in the residential construction business within 20 miles of the company�s location in downtown Portland, Maine.

If your agreement does not include a reference to the scope of the agreement, then you may have a legitimate issue. Regardless of whether scope is referenced within the agreement, I strongly recommend that you consult with an attorney of your choosing who can review the agreement and offer specific advice.

As a Franchise Attorney I agree with the other attorney answer, but add the following. There's no bright line test defining "directly" and "indirectly." A careful reading of the document you signed is required. It must also be reasonable in geographic scope. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation