Federal & State Regulations | Employment contracts - Maine

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Summary of differences between federal and state regulations

Federal law generally does not regulate employment contracts between employers and employees with one exception: contracts that require the joining or refraining from joining of a labor union as a condition of employment. On the federal level, these contracts are governed by the National Labor Relations Act. States may have a corresponding provision and may also have additional provisions regarding employment contracts.

Maine law has no provisions specific to union membership. It does have other provisions relative to employment contracts.

Employer’s insolvency

If an employee becomes unemployed because of his employer’s insolvency, in claiming wages earned but not yet received, the employee can include all fringe benefits that were part of an employment contract including retirement, insurance, health care and vacation time. §629-A

Wage rebate

An employer can not require an employee or prospective employee to agree, either orally or in writing, to give back a portion of his compensation to the employer for any reason other than for the payment of a loan, debt or advance made to the employee or for payment of merchandise bought from the employer, or for benefits or other deductions the employee agreed to pay. §629

Waiver of rights

An employee can not enter into an agreement to waive his rights to workers’ compensation unless approved by the workers’ compensation board or the Commissioner of Labor. §106