October 19, 2018

October 18, 2018

Subscribe to Latest Legal News and Analysis

October 17, 2018

Subscribe to Latest Legal News and Analysis

October 16, 2018

Subscribe to Latest Legal News and Analysis

Massachusetts Non-Compete Legislation Awaiting Governor Baker’s Signature

Employers in Massachusetts are watching closely as a non-compete bill was recently passed by the Legislature and is now on Governor Baker’s desk. Currently slated to take effect on October 1, 2018, the law will significantly impact the drafting, implementation and enforcement of non-compete agreements in the Commonwealth. Governor Baker is expected to sign the bill into law, but before doing so, he may amend and send the bill back to the Legislature to be voted on again.

The legislation imposes several key restrictions on employers using non-compete agreements in Massachusetts, including:

  • limiting the post-employment non-compete restriction period to a maximum of one year;
  • requiring employers to offer a “garden leave” for the length of the restricted period providing for at least 50% of the employee’s highest base salary during the prior two years (or some “other mutually-agreed upon consideration”);
  • prohibiting employers from enforcing non-compete agreements against certain categories of workers, including non-exempt employees and employees who have been laid off or whose employment was terminated without “cause” (currently an undefined term); and
  • no longer allowing continued employment to serve as consideration to support non-competition agreements signed after employment has commenced.

Once signed into law, we will provide a full breakdown of the law’s key provisions and an overview of the law’s practical implications for employers with Massachusetts employees and independent contractors. Stay tuned!

©1994-2018 Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. All Rights Reserved.

TRENDING LEGAL ANALYSIS


About this Author

Emma Follansbee attorney MintzLevin
Attorney

Emma counsels clients on a range of employment and labor matters, including compliance with federal, state, and local laws, disciplinary investigations, and litigation.

Emma was a Summer Associate at Mintz Levin in 2016. During law school, she had a summer internship with the Massachusetts Access to Justice Commission. Prior to attending law school, she worked as a Project Analyst at Mintz Levin for two years.

In law school, Emma was senior staff editor of the Environmental Affairs Law Review. She is fluent in French.

617-348-4732
Katherine Beattie, Mintz Levin Law Firm, Labor and Employment Litigation Attorney
Member

Kate’s work primarily involves litigation and counseling on federal and state labor and employment matters, including issues involving discrimination and harassment, leaves of absence, wage and hour disputes on an individual and class-wide basis, employee classification, wrongful termination, trade secret protection, and the enforcement of noncompetition and nondisclosure agreements.

Kate handles employment litigation before federal and state courts, arbitrators, and administrative agencies, including state fair employment and human rights agencies. She has also represented clients in cases pertaining to the False Claims Act, insider trading, and shareholder disputes.

617-348-4445