Massachusetts`s legislature adopts the long-awaited non-compete clause, Bowditch, August 2, 2018. It describes the terms of the 2018 law, which limits non-compete agreements by employers New Massachusetts The law imposes non-compete obligations, by David Fisher and Marissa Comart, September 26, 2018. All Stainless, Inc. Colby, 364 Mass. 773 (1974) “A contract that is not included in a personal services contract is applied if it is reasonable, based on all the circumstances.” A non-competition agreement is a contractual undertaking that prohibits one of the parties, usually a worker, from engaging in conduct in competition with the other party, usually an employer. As of October 1, 2018, non-competition obligations are in place in Massachusetts, unless they meet certain strict legal requirements. These laws prohibit non-competitive agreements for certain occupations: a number of companies require workers to sign agreements that promise that they will not compete with their employer after leaving their jobs. These agreements are often in the form of a provision of a larger employment contract or may constitute a separate document. However, employers must understand that Massachusetts courts, as long as they are exempt, will continue to analyze the applicability of these agreements under the Massachusetts common law and will likely analyze the public policy behind the Non-Competition Act. Although the law, for example, creates restrictive alliances in separation agreements, courts might ask why a confederation that lasts more than one year should be enforced. So what was the “other recital” that the Tribunal considered sufficient under the new Non-Competition Act? It turns out that this is the same type of boiler platform that has existed in these agreements for years: Fair Competition Law, Beck Reed Riden LLP This source focuses on more than just non-competition and includes trade secrets, privacy and security, intellectual property and unfair competition.
It is not specific to Massachusetts, but offers substantial resources on this subject, including investigations to 50 states, and The Changing Landscape of Trade Secrets Laws and Noncompete Laws Around the Country. Duration: The law limits the period after employment without any non-competition clause to one (1) year. However, in two scenarios, this period can be extended for up to two (2) years – if the worker has breached a fiduciary duty to the employer or illegally taken over the employer`s property (physically or electronically). This is potentially important for employers, who often face the all-too-familiar scenario of an employee getting away with his or her documents and information.