Are Non Competes Enforceable in Massachusetts?

Unlocking the Maze of Non-Compete Agreements in Massachusetts

Non-compete agreements have long been a point of contention in employment law, and the rules surrounding their enforceability in Massachusetts are no exception. While the Massachusetts Non-Compete statute passed in 2018 aimed to provide clarity and requirements for valid non-competes, many questions still linger, especially for employees who are bound by agreements signed before the law's enactment.

Whether your non-compete falls under the new law or not, your rights and restrictions depend on the specific terms of your agreement and the circumstances of your employment. Here, we offer some fundamental guidelines to help you navigate the intricacies of non-compete agreements in Massachusetts.

Non Competes Signed After October 1, 2018

For agreements signed after this date, the new Massachusetts non-compete statute applies. Key requirements include:

Garden Leave Clause: Employers must agree to compensate you with at least 50% of your salary or other mutually agreed-upon consideration during the non-compete period.
Exempt Employees: Certain employees cannot be subjected to non-compete agreements. This category includes non-exempt employees (those eligible for overtime pay), individuals under 18 years of age, and a few other categories.
Termination Without Cause: If you are terminated without cause or laid off, your non-compete is unenforceable.
Consultation Period: Employers must provide you with ten days to consult with an attorney before signing the non-compete agreement.

While these requirements can help inform your decision about your non-compete, it's crucial to remember that there are still unresolved issues surrounding the interpretation of the new law. Consulting an employment attorney is advisable to gain a comprehensive understanding of your specific situation.

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Non Competes Signed Before October 1, 2018

Non-compete agreements signed prior to this date will be evaluated based on common law principles. These agreements are enforceable only if reasonably necessary to protect a "legitimate business interest," which typically involves safeguarding confidential information and goodwill.

The duration and geographic scope of the non-compete must be reasonable considering the employer's interests. Before the new statute, court decisions varied significantly regarding what constituted a reasonable restriction. An experienced attorney can assess the risk of enforcement based on your job's nature and your employer's business.

Defenses to Enforcement of a Non Compete

Whether your agreement predates or postdates the non-compete statute, several defenses can be raised against the enforcement of a non-compete in Massachusetts, including:

Lack of Consideration: If you received nothing in return for agreeing not to compete.
Material Changes: Substantial changes in your job or compensation after signing the agreement.
Employer's Breach: Failure of the employer to fulfill essential aspects of your employment agreement.
Lack of Legitimate Business Interests: When there is no genuine business interest to protect.
Overreach: The employer seeks to impose unreasonable time and geographic restrictions.

Furthermore, some professionals, such as physicians, registered nurses, licensed social workers, and attorneys, are exempt from non-compete agreements in Massachusetts, either by statute or ethical rules. These limitations may extend to related fields and should be discussed with an attorney experienced in non-compete issues.

Understanding the nuances of non-compete agreements and their enforceability is essential to make informed decisions about your career and future employment opportunities in Massachusetts. For tailored advice and guidance, consult an experienced employment attorney.

How Our Non Compete Lawyers Can Help

At slnlaw, our experienced team of employment attorneys can provide you with expert guidance and representation to navigate the complexities of non-compete agreements in Massachusetts. Whether you need assistance with understanding your rights under the new non-compete statute or require defense against the enforcement of an existing agreement, we are here to help you make informed decisions and protect your interests. You can use the button below to schedule a call back from a member of our team, or give us a call at 781-784-2322.

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