Enforceability Of Noncompete Agreements In Massachusetts

Author: Georald Camposano | April 9th, 2021

In particular, the law applies only to non-competition prohibitions and does not apply to non-requests or agreements of customers or employees related to the sale of a business. Therefore, Massachusetts employers who believe that a restrictive pact is necessary to protect a legitimate business interest should consider using “staggered” agreements. In other words, this decision is particularly noteworthy for practitioners who are closely monitoring the way the courts will analyze the non-compete agreement reached by a Massachusetts resident after the MNCA came into force. In particular, this decision indicates that the agreements do not need to include a Massachusetts legal choice provision and that agreements containing extraterritorial legal choices provisions will survive the control of the MNCA as long as they are otherwise bound by Massachusetts law. And this confirms that, as we have advised our readers, unlike some sensational pieces that came out immediately after the law was passed, gardening holidays after the MNCA are not necessary for a non-competition clause to be enforceable. Many practitioners and news agencies have indicated that this “garden vacation” requirement means that employers cannot enter into or enforce non-compete agreements unless they agree to pay workers for the period during which they are not allowed to compete. This interpretation was overlooked, however, by the so-called bold language above, which suggests that employers could impose non-competition bans under this new law, without agreeing on the allocation of garden holidays, if they agreed to provide something else. That “something different” is unfortunately not defined by law. For public policy reasons, Massachusetts has passed legislation prohibiting the use of non-compete clauses for certain occupations: a non-compete agreement is a contractual undertaking that prohibits one of the contracting parties, usually a worker, from engaging in competitive conduct with the other party, usually an employer.

As of October 1, 2018, non-competition obligations are in place in Massachusetts, unless they meet certain strict legal requirements. The reform of the non-compete clause arrived in Massachusetts, with important legal and practical implications for all employers with Massachusetts workers. Employers have only six weeks to review and adopt a new approach to non-competitive agreements for their employees. The new law, which will come into force on 1 October 2018, comes after years of debate and radically changes the restrictive legal landscape of Confederation in the Commonwealth. Employers have only six weeks to ensure that their non-competition agreements and their practices in implementing and implementing these agreements comply with specific legal requirements.

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