The New Massachusetts Noncompete Law: What You Need to Know
After years of debate, the Massachusetts Legislature recently passed a comprehensive noncompete reform law, and Governor Baker signed the bill on August 10, 2018. The new law overhauls existing law and imposes new prohibitions and requirements for noncompetes signed by Massachusetts workers as of October 1, 2018. Every Massachusetts employer that uses noncompetes will need to change its agreements and practices.
- What workers are subject to the law?
- New categories of workers who cannot be subject to noncompetes, including non-exempt employees and employees terminated without cause
- New requirements for a noncompete to be valid and enforceable, including:
- Notice of the noncompete prior to hire
- Garden leave or “other mutually agreed upon consideration”
- Limitations on duration and geographic scope
- Practical tips for employers to plan for compliance and enforcement