Legislature Fails to Reach Compromise on Non-Compete Bill

By Andrew P. Botti

Although burning the midnight oil last night, a Joint Conference Committee failed to reach agreement on a compromise bill by the established deadline of midnight, July 31.

Among other differences, the House and Senate versions of so-called non-compete reform contained very different “garden leave” provisions.

The House version required 50% pay for a one year “sit it out” period, while the Senate version required 100% pay for a maximum 3 month non-compete period. The House version also allowed the parties to come up with another form of acceptable consideration to support the non-compete period.

The Governor indicated that he favored the House version of the proposed reform.

At this point, the issue of non-compete reform is off the table until January 2017, the start of the next legislative session on Beacon Hill.

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