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The recently adopted Massachusetts Non-Competition Agreement (“Law”) contains a roadmap that employers must follow to enforce non-compete agreements concluded on or after October 1, 2018. While the law contains several new requirements for non-competitive agreements, it also codifies what Massachusetts courts have held for years: if the restrictions of a competition agreement are appropriate in your business, time and space and are narrow to protect a legitimate commercial interest, the agreement should be enforced (provided the agreement is in accordance with the law). The law states that the agreement “must not be broader than necessary to protect one or more. legitimate interests of the employer.┬áLegitimate business interests include the employer`s business secrets, confidential information provided by the employer, and the employer`s value. On the other hand, the law provides that when an existing worker enters into a non-compete agreement, such an agreement must be supported by a fair and appropriate consideration and that continued employment is not sufficient. As a result, the courts could set out the law so that employment would not be adequately taken into account, even for new workers. On the other hand, the courts might view this provision as evidence that Parliament made a deliberate decision to authorize a first job, but not a maintenance of employment, in order to support a non-compete agreement. In order to avoid this potential problem, employers who do not offer a garden leave clause should consider providing additional consideration to new workers, such as a signing bonus. B, stock options or other points of monetary value to support the non-competitive agreement. Le Massachusetts Gov. Charlie Baker, on August 10, 2018, signed the Massachusetts Noncompetition Agreement Act, which governs non-compete agreements signed by employees working or residing in Massachusetts.

The law applies to non-competition bans signed on or after October 1, 2018. This customer alert contains a summary of the most important details of the law. The law provides that a court may, at its sole discretion, “reform or otherwise review” excessive competitiveness to protect the legitimate business interests of the employer. A court can also fully apply the non-competition clause without infringing on the validity of other provisions of the agreement (for example. B undro done agreements). Massachusetts noncompete law blog , Foley Hoag “[F]ocuses on developments in Massachusetts in the areas of agreements to compete, non-solicitation and non-disclosure agreements, trade secrets and the many related issues that arise when employees move between employers.” (i) When the contract is entered into at the beginning of the employment, it must be written and signed by the employer and the worker, expressly stating that the worker has the right to consult with the lawyer before signing. The agreement must be made available to the worker by the previous official offer of employment or 10 working days before the worker begins employment. The Massachusetts common law will continue to regulate the types of agreements that are excluded from the law. For current workers (not in the context of a separation of work), the employer must submit a 10-day working day before the agreement comes into force.

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