Non-Compete Agreements: Navigating Massachusetts Law for Employers
Massachusetts' New Non-Compete Law and EmployersIn 2018, Massachusetts introduced new legislation that has significant implications for employers seeking to safeguard their goodwill and confidential information through non-compete agreements.
Understanding the key aspects of this law is crucial for businesses in the state. It is also critical for you in understanding the pitfalls of the free or low cost non compete templates on the internet, which by and large fail to recognize Massachusetts requirements. Key Provisions of the LawThe Massachusetts law on non-compete agreements, effective for those signed on or after October 1, 2018, includes the following key provisions:
Applicability of the LawThis law applies to any employee who lives or works in Massachusetts, irrespective of any contractual stipulations to the contrary. If your business has employees residing or working in Massachusetts, the statute will apply. However, for remote employees located in other states, the law's applicability remains uncertain and may require legal assessment.
Understanding "Garden Leave"The Massachusetts Non-Compete Act mandates a "garden leave" provision, ensuring that employees subject to a non-compete receive at least 50% of their highest base salary throughout the restricted period. This requirement applies to new agreements signed after October 1, 2018, while pre-existing agreements are exempt. Employers have the flexibility to choose whether to enforce the non-compete with garden leave payments or waive the restrictions, depending on the specific circumstances.
Who Can Be Bound by a Non-Compete Agreement?The law explicitly prohibits enforcing a non-compete against certain employee categories, including those not exempt from overtime, individuals under 18 years of age, undergraduate or graduate student interns, and employees terminated without cause. Determining overtime exemptions and the definition of "cause" can be complex, making it advisable to seek legal counsel to ensure proper classification and compliance.
Exploring AlternativesWhile the cost of non-compete agreements has increased for employers, alternative restrictive covenants remain unaffected by the new law and can achieve similar objectives:
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Meet Our Employment Lawyers
Emily Smith-Lee is the owner and founder of slnlaw. She is a 1996 graduate of Boston College Law School. She was previously a partner at the Boston office of a large international firm, where she worked for thirteen years before starting the firm that became slnlaw in 2009. She has been recognized as Massachusetts Superlawyer each year since 2013, and in 2018 earned recognition as one of Massachusetts Lawyers Weekly's Lawyers of the Year. She has written a book on employment law: Rules of the Road, What You Need to Know About Employment Laws in Massachusetts, and helped thousands of clients on both the employee and employer side with severance and non compete review and negotiation, wage and hour, discrimination and retaliation disputes, and advice about employment law generally.
Rebecca Rogers: Rebecca is a 2006 graduate of Boston College Law School, and has worked with slnlaw since 2013. She previously worked as an intellectual property litigation attorney for Fish & Richardson in Boston, Massachusetts, and clerked for the Massachusetts Supreme Judicial Court. Rebecca has helped clients with wage and hour disputes, employment discrimination and retaliation claims, review and negotiation of severance and non compete agreements, and advice to both employees and employers about navigating complex employment situations.
Jenna Ordway: Jenna is a 2013 graduate of Quinnipiac Law School, and also earned an LLM in Taxation from Boston University in 2015. She has been affiliated with slnlaw since 2011, first as a law clerk and then as an attorney. Jenna has been recognized since 2019 as a "Rising Star" by Massachusetts Superlawyers. Jenna has helped clients with review and negotiation of severance and non compete agreements, wage and hour disputes, employment and discrimination claims, and advice to small business owners about employment law and other business matters.
Elijah Bresley: Eli is a 2014 graduate of Seton Hall Law school, and has worked with slnlaw since 2020. He previously worked for a boutique employment law firm outside of Boston, and then for the Labor and Employment department of a large Boston firm. He also spent a year clerking for the judges of the Superior Court in Hartford, Connecticut. Eli has helped clients on the employee and employer side with all varieties of employment law issues, including employment discrimination, retaliation, and wage and hour issues, litigation in MCAD and state and federal courts, and advising employers about employment policies and practices.
Sharleen Tinnin: Sharleen is a 2010 graduate of Northeastern University School of Law, and has been with slnlaw since 2023. Prior to joining slnlaw, she worked with King, Tilden, McEttrick & Brink, P.C. on complex civil litigation matters. She previously worked for the United States Department of Justice, and received an "Excellence in Justice" award in 2017. Sharleen has helped clients with wage and hour, discrimination and retaliation disputes, review and negotiation of severance agreements, and litigation in MCAD and state and federal courts on employment related issues.
How We Can Help
For personalized legal advice tailored to your specific circumstances, it is recommended to consult with an employment attorney. We can help you get clarity on the best way to protect your business with a legally enforceable agreement. 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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