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What are Legitimate Business Interests That Justify Enforcing a Non Compete?

An employer may only enforce a non compete agreement if it is necessary to protect a "legitimate business interest."  What counts as a legitimate business interest may be narrower than you think.

Basically, there are two categories: protection of trade secrets or confidential information, and protection of employer goodwill.  Making more money, retaining key personnel, or simply keeping top talent from working for a competitor do not count as grounds for enforcement of a non compete agreement in Massachusetts.

Trade secrets or confidential information can encompass many things beyond technical secrets, including customer lists, business plans, marketing strategies, and the like.

"Good will" is the employer's interest in the relationships you have built under their name.  This is most commonly applied in the context of sales, where an employee may have cultivated prospects and customers over the years.  There are, however, other public or customer facing roles where an employer might claim an interest in the good will.


Learn more here about legitimate interests to protect through a non compete agreement.

Need Help With a Non Compete Question?

Contact Us
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  • Home
  • About
    • Slnlaw Offices
    • Fees and Payment
    • Privacy Policy
    • Publications and Interviews
  • Attorneys
    • Emily Smith-Lee >
      • 2018 Lawyer of the Year
    • Jenna Ordway
    • Rebecca Rogers
    • Andrew Silvia
    • Elijah Bresley
  • Reviews
  • Contact
  • Blog
  • Employment Law Solutions
    • Employment Law MA
    • Discrimination in the Workplace
    • Employment Termination
    • Sexual Harassment at Work >
      • Sexual Harassment in a Small Business
      • Sexual Harassment and Non Disclosure Agreements
      • Sexual Harassment and Remote Work
    • Wage and Hour Laws
    • Independent Contractor Law
    • Non Compete Agreements >
      • Are non competes enforceable
      • Massachusetts Non Compete Act
      • Pre 2018 Massachusetts Non Competes
    • Equal Pay Act
  • Estate Planning
    • Massachusetts Wills and Trusts
    • Why You Need an Estate Plan
    • Massachusetts Estate Tax
    • Inheritance Tax
    • How to Make an Estate Plan
  • Business Law Solutions
    • Small Business Law
    • Business Contract Basics
    • Civil Suit Defense
    • Legal Issues for Start Ups
    • Trademark Basics
    • How to Incorporate
    • Sale of Business
  • Legal FAQs
    • Estate Planning FAQs
    • Probate FAQs
    • Small Business FAQs
    • Wage Act FAQs
    • Commission Pay FAQs
    • Overtime FAQs
    • Independent Contractor FAQs
    • Non Compete FAQs
    • Employment Discrimination FAQs
    • Employment Termination FAQs
    • Severance Package FAQs
    • Medical Leave FAQs
    • Sexual Harassment FAQs
    • Massachusettts Unemployment FAQs
    • Employer FAQs
    • Civil Lawsuit FAQs