This new law signed by Governor Baker in August goes into effect October 1, 2018 and sets limits to enforceability of non-compete agreements that employers may enter into with exempt employees and contractors, provided those employees leave their positions voluntarily or are terminated for cause. In those cases, to be enforceable, such non-compete agreements must meet the following standards:
- Not exceed one year in duration after employment termination
- Provide the employee some consideration which at a minimum is either “garden pay” or other mutually agreed upon consideration
- Be reasonable in scope of prohibited activities and geographic coverage
- Be included at the time of job offer or 10 days prior to employment whichever occurs earlier.
- Non-solicitation of customers and suppliers
- Non-solicitation of employees
- Assignment of inventions
- Confidentiality/ non-disclosure agreements
Or view the article on my website at https://www.executiveemploymentattorney.com/new-massachusetts-law-restricts-non-compete-agreements/
If you have any questions on this article, or questions in dealing with a non-compete agreement for yourself or a colleague, please email me at firstname.lastname@example.org.