Does the New Massachusetts Non Compete Law Apply to My Agreement?

Application of the 2018 Massachusetts Non Competition Agreement Act

The Massachusetts Non Compete Law, passed in 2018, applies to agreements signed on or after October 1, 2018 in connection with employment. The law will also apply to your agreement if you live or work in Massachusetts, even if the document says that a different state's law will apply.

The statute is not retroactive, so it will not apply to older agreements. It also specifically does not apply to:

Non competes in connection with the sale of a business, if you are a significant owner and receive a significant benefit from the sale.
Non compete agreements signed in exchange for severance pay, if you are given seven days to rescind the agreement after signing.
Non-solicitation agreements.

Sometimes the lines between these things is not clear. For example, if you are both an employee and a shareholder in a company that is sold, you should seek legal advice about whether a non compete connected with that transaction is within or outside of the statute.

Similarly, some agreements that are called non-solicit agreements are in fact written so broadly that they function as a non compete.

Learn more here about the Massachusetts Non Compete Law.