Thursday, August 9, 2018

Non-Compete News: Massachusetts Legislature Passes Non-Compete Legislation

As discussed in our prior Alert, the Massachusetts Legislature has been considering legislation focused on reforming non-compete covenants. The Legislature has now passed a major overhaul of non-compete law, known as the “Massachusetts Noncompetition Act.” Assuming Governor Charlie Baker signs the bill, it will apply to noncompetition agreements entered into on or after October 1, 2018. This Alert summarizes the key provisions of the Act.
What is a noncompetition agreement?
The Act imposes minimum requirements that noncompetition agreements between employers and “employees” (broadly defined to include independent contractors) must meet to be valid and enforceable. For purposes of the Act, a “noncompetition agreement” means:

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