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Public Policy

Policy Brief: Massachusetts Non-Compete Reform

After years of debate on non-competition agreements in Massachusetts, a new statute governing non-competes included in this year’s economic development bill will take effect on October 1, 2018.  

The law now limits non-competes to one year, requires employees receive notice and time for review, and exempts lower-paid employees. It also institutes garden leave, which requires an employer to pay an employee during the time their employment is restricted by a non-compete. Importantly, in lieu of garden leave it allows for “mutually agreed upon consideration” to give employers flexibility in determining what constitutes compensation related to the restricted period.

This brief provides a summary of the new law and highlights those changes in addition to providing information about what the law does not cover.

Read the Chamber's Policy Brief: Massachusetts Non-Compete Reform