New Massachusetts Law Restricts Non-Compete Agreements

This is an article of mine published last week in the September 2018 issue of the IEEE Reflector, the online monthly newspaper, that circulates to the 10,000 members of IEEE in Massachusetts.  www.ieee.org  My article is featured on page 5 of the current September 2018 issue.

This new law signed by Governor Baker in August goes into effect October 1, 2018 and sets limits to enforceability of non-compete agreements that employers may enter into with exempt employees and contractors, provided those employees leave their positions voluntarily or are terminated for cause.  In those cases, to be enforceable, such non-compete agreements must meet the following standards:

  • Not exceed one year in duration after employment termination
  • Provide the employee some consideration which at a minimum is either “garden pay” or other mutually agreed upon consideration
  • Be reasonable in scope of prohibited activities and geographic coverage
  • Be included at the time of job offer or 10 days prior to employment whichever occurs earlier.

The new law will also not affect non-competes that are part of the sale of a business or non-competes that are part of separation agreements negotiated at the time of employment termination.   Additionally, the new law expressly excludes application to any restrictions on these other restrictive covenants whose enforcement will be continue to be governed by Massachusetts state common law:

To read my full Reflector article, go to this LINK:  https://issuu.com/ieeeboston/docs/septemberdr2018?e=18904825/64145987 and view it on page 5.

Or view the article on my website at https://www.executiveemploymentattorney.com/new-massachusetts-law-restricts-non-compete-agreements/

If you have any questions on this article, or questions in dealing with a non-compete agreement for yourself or a colleague, please email me at radelson@engelschultz.com.

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Structuring and Allocating Equity among Founders for Startup Success

This is an article of mine published last week, on August 7, 2018, by CEO Refresher magazine.  My article is currently featured on the first page of the magazine website – http://www.refresher.com/

This article of mine offers entrepreneurs techniques to build management while still conserving cash, including 1) Entity choice: LLC vs. corporation, the role of that choice in company growth and recruitment, 2) Methods of allocating equity among the startup team, 3) Key business and tax issues involved in equity allocation and its structuring, and 4) Shareholder and contractual issues to be resolved, separately, while all the team remains “on the same page”.
Continue reading “Structuring and Allocating Equity among Founders for Startup Success”

How to Fund your Company

This is an article of mine published last month, on June 15, 2018, by CEO Refresher magazine.  My article is currently featured on the first page of the magazine website – http://www.refresher.com/

This is an article on the funding of early stage companies by venture capital groups or angel investor groups.  Among the questions discussed in the article, are the following:
Continue reading “How to Fund your Company”

Structuring Bonuses in Your CEO Compensation for Maximum Benefit

Last Tuesday, on May 29, 2018, CEOWorld magazine published an article I wrote on  “Structuring Bonuses in Your CEO Compensation for Maximum Benefit.  The magazine advised me that I can use “Featured in the CEOWORLD magazine” and the CEOWORLD “Logo” on my website.

This article was designed for CEOs and other C-Suite, VPs or other senior executives who when negotiating a new job offer or employment contract need to give equal and perhaps greater focus on the structure and terms of bonus as they do to base salary compensation.
Continue reading “Structuring Bonuses in Your CEO Compensation for Maximum Benefit”

Becoming CEO of a Startup – Key Employment Contract, Equity Terms and Other Considerations

Last Tuesday, on April 24, 2018, CEOWorld magazine published an article I wrote on  “Becoming CEO of a Startup – Key Employment Contract, Equity Terms and Other Considerations.  The magazine advised me that I can use “Featured in the CEOWOLRD magazine” and our “Logo” on your website. Continue reading “Becoming CEO of a Startup – Key Employment Contract, Equity Terms and Other Considerations”