Legislative Update – Massachusetts Non-compete Agreements

In July, the Massachusetts Senate passed an amendment which would severely limit employers’ use of non-compete agreements with their employees. Non-compete clauses prohibit employees from competing with companies for typically one or two years after they leave the company. The amendment would prohibit non-compete agreements with all hourly employees and limit noncompetes to six months for executives, researchers, and managers who are covered by the amendment.

The amendment is a compromise – Governor Deval Patrick proposed banning all noncompetes (like California), and the House bill did not have any limits on such agreements. The amendment is currently in a Conference Committee and, if passed, would take effect on January 1, 2015.

Client Tip: This is a significant change which, while it will not directly affect college and university employees, is important – particularly for high tech start-ups developing college and university technologies and companies in which colleges and universities own equity.

Mr. Powell joined Bowditch & Dewey, LLP as an Associate in 2013 after graduating from Boston University Law School. Mr. Powell concentrates his practice in all aspects of business and employment litigation.

LinkedIn 

Tweet about this on TwitterShare on LinkedInShare on FacebookShare on Google+Email this to someonePrint this page