Is a Non Compete Clause in My Severance Agreement Enforceable?
Different Rules for Non Competes in a Severance Agreement
The Massachusetts Non Compete Act does not impose the same requirements for enforcement on agreements made in connection with separation from employment. The only requirement for these agreements is that you be given seven days to rescind after signing if you change your mind.
If you never had a non compete agreement before and are asked to sign a new one in exchange for severance pay, you should assume that the garden leave and other requirements of the Non Compete Act do not apply. You should know, however, that you have the seven day rescission period under the Non Compete Act.
Sometimes you will be asked in a severance agreement to reconfirm a non compete you already had. It has not been made clear through the courts yet whether this takes your prior non compete out of the requirements of the statute. If you are in this situation and considering signing a severance agreement, you should consult with an employment lawyer to understand what the risks and implications of reaffirming your non compete are.
Learn more here about non compete clauses in severance agreements.
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