The non-compete agreement is back on the radar again in Massachusetts. On June 29, 2016, the Massachusetts House of Representatives unanimously passed a comprehensive non-compete reform bill. The business community, including the Commonwealth’s high-tech sector, have been pushing for traditional non-compete reform for the past several years.
The significant features include:
- Limiting the duration of non-competes to one year
- Banning non-competes for non-exempt employees, interns, employees under the age of 18, and employees terminated without cause
- Requiring employers to provide prospective employees with notice that a non-compete is required for a position and time to seek legal counsel
- Requiring employers to pay 50% of a former employee’s pay when the employee is not working because of his or her non-compete
The Senate passed a non-compete reform bill last year, so it seems likely that a new law may be passed this year. Once the changes are worked out between the House and Senate, Governor Baker would be the final approver. He has yet to take a position on non-compete agreements.
For more information on the non-compete reform bill, visit http://blog.skoler-abbott.com/2016/07/01/massachusetts-takes-major-step-toward-noncompete-reform/