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:
- Non-solicitation of customers and suppliers
- Non-solicitation of employees
- Assignment of inventions
- Confidentiality/ non-disclosure agreements
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 firstname.lastname@example.org.