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.