Still Want to Sign a Non-Compete in Massachusetts?


Massachusetts new economic development bill (Bill H.4714) changed how non-compete agreements are treated and enforced in the Commonwealth. You need to pay attention to the following:

  • Non-compete agreements must be in writing (well, yes, I saw that one coming);

  • Your new employee should receive the non-compete agreement together with any formal offer letter or 10 days before employment starts (whichever happens earlier);

  • If you are enforcing a non-compete agreement, you must pay "garden leave" (half the employee's salary) or negotiate other compensation;

  • New non-compete agreements for existing employees require actual consideration (unclear if continuing employment is still a sufficient consideration);

  • Hourly employees, minors, and employees terminated without a cause cannot be held to a non-compete agreement; and

  • Non-compete agreement cannot extend beyond a year.

53 views
  • LinkedIn - White Circle
  • Twitter - White Circle
  • Instagram - White Circle
  • Facebook - White Circle

© 2017 - 2020 East West General Counsel. All Rights Reserved.