Bill H 1701

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Massachusetts Noncompetition Agreement Act

By Andrew P. Botti

Out of the Joint Committee on Labor and Workforce Development has come the proposed “Massachusetts Noncompetition Agreement Act,” which would be an amendment to Chapter 149 of the General Laws.

The major provisions are as follows:

  • the non-compete must be provided to the employee with a formal offer of employment or 10 days before employment, whichever is earliest;
  • restrictive period of no more than 12 months;
  • requires that the non-compete contain a garden leave clause such that the employee will be paid for the duration of the restrictive period;
  • prohibits enforcement of non-competes against certain types  of workers including those classified as nonexempt under FLSA, as well as employees that have been terminated without cause or laid off.

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