August 14, 2020

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August 14, 2020

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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!

©1994-2020 Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. All Rights Reserved.National Law Review, Volume VIII, Number 220

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About this Author

Emma Follansbee attorney MintzLevin Employment Counseling and Training, Employment Litigation & Arbitration, Discrimination & Harassment, Employee Mobility & Trade Secrets
Associate

Emma counsels clients on a wide variety of employment issues and litigates employment disputes before state and federal courts and administrative agencies. Her litigation practice includes restrictive covenant agreements; discrimination, sexual harassment, and retaliation claims; and wage and hour compliance.

Emma regularly advises clients on compliance with federal, state, and local laws, including changes in Massachusetts non-compete laws and leave entitlements. Her practice also encompasses assisting clients with terminations and reductions in force, WARN notifications, workplace...

617-348-4732