Will My Non Compete be Void if it Does Not Have a Garden Leave Provision?
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The Massachusetts Non Compete Act states that a non compete agreement must have a "garden leave" provision- a clause that states you will be paid at least 50% of your base salary for the length of the restricted period.
This requirement, however, also includes the ambiguous words "or other mutually agreed consideration." Some attorneys have argued that these words mean you can avoid garden leave if there is other consideration involved in the non compete. Others maintain that there must be some payment for the restricted period, separate from the consideration for entering into the agreement in the first place, and of a value at least equal to 50% of the employee's base pay. Because the law is still relatively new, there has not been a court decision clarifying which of these is the correct interpretation of the statute. For this reason, you should not assume your non compete will be invalid only because of the absence of a garden leave provision, and should speak to an experienced employment attorney before signing the agreement. Learn more here about the garden leave requirement of the Massachusetts Non Compete Act. |
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