Should I Use Non Compete Agreements in My Business?
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Since the Massachusetts Non Compete Act went into effect in October, 2018, there are new obstacles to enforcing a noncompetition agreement against your employees.
Your non compete may be unenforceable if you did not give the required ten days notice, or if you seek to enforce it against someone terminated without cause or an employee who does not meet the standard for overtime exemption. Perhaps the biggest obstacle is the "garden leave" section, which requires that you agree to pay the employee at 50% of their highest base salary for the period of restriction, unless you choose to waive the non compete. Many employers are re-thinking these agreements. These restrictions to not apply to confidentiality and non-solicitation provisions, only to an agreement not to compete. You might find that a well drafted NDA and non-solicit is enough to achieve your business goals without navigating the new requirements under Massachusetts law. You should also proceed with caution if you are thinking about updating agreements signed before October, 2018. The new requirements are specifically not retroactive, which means they do not apply to these older agreements. You may actually have more enforcement rights if you do not modify your agreements. Learn more here about the new Massachusetts non compete law. |
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