Non-compete agreements have become a common feature of employment contracts across many industries. If you’re an employee in Massachusetts, it’s especially important to understand your rights and obligations under these agreements. Massachusetts has enacted specific laws that protect workers from overly broad restrictions.
What Is a Non-Compete Agreement?
A non-compete agreement is a contract clause that restricts an employee’s ability to work for a competitor or start a competing business after leaving employment for a specified period. Employers often claim they’re necessary to protect trade secrets or client relationships. From an employee perspective, however, these agreements can impact career mobility, and it’s better to take a cautious approach and be informed when they are a part of your employment contract.
The Massachusetts Noncompetition Agreement Act
Since October 1, 2018, Massachusetts has had a dedicated law governing non-competes. In general, the Massachusetts Noncompetition Agreement Act (MNAA) imposes requirements that may need to be met for a non-compete to be enforceable, including:
- Advance Written Notice: In connection with the commencement of employment, you generally must receive the agreement, in writing, either before a formal offer of employment or at least 10 business days before your start date.
- Consideration: If the agreement is entered into after commencement of employment, but not in connection with the separation of employment, it generally must be supported by fair and reasonable consideration independent from the continuation of employment.
- Garden Leave or Other Mutually-Agreed Upon Consideration: Generally, the non-competition agreement must be supported by “garden leave” pay during the restricted period—at least 50% of your highest base salary over the prior two years—or other mutually-agreed upon consideration.
- Reasonable Scope: Generally, the restrictions must be reasonable in geographic area, time (generally limited to one year), and scope of activities.
- Prohibited for Certain Employees: Non-competes are generally not enforceable against employees who are non-exempt under the Federal Labor Standards, undergraduate or graduate student involved in an internship, employees who have been terminated without cause or laid off, or employees under age 18.
Before You Sign
If your new or current employer asks you to sign a non-compete, take the following steps:
- Read the Contract Carefully: Never assume it’s boilerplate. Pay close attention to the duration, geography, and types of work prohibited.
- Ask Questions: Clarify how “competition” is defined and whether any carve-outs are negotiable.
- Seek Legal Advice: A Massachusetts employment attorney can review the agreement, explain your options, and help you negotiate more favorable terms.
- Consider the Impact: Think carefully about how the restrictions could limit your future career moves if you leave.
Already Bound by a Non-Compete?
If you’ve already signed a non-compete and are considering a job change, don’t assume you’re stuck. An experienced employment lawyer can help you evaluate whether your agreement is valid and explore potential solutions.
Bottom Line
Massachusetts has taken steps to limit the overuse of non-compete agreements, but they still have serious consequences if enforced. If you’re asked to sign—or are already subject to—a non-compete, get help to understand the agreement. Knowledgeable legal guidance can protect your rights and help you move forward in your career with confidence.
At the Maura Greene Law Group, we advocate for employees who are entering into employment contracts that may feature noncompete agreements or other clauses that should be carefully reviewed. We are there to support you in making the right decisions for your future. Contact us for a confidential consultation or call at 617-936-1580.
The Not So Fine Print:
Every case has its unique facts. Before you take any action, you should contact an employment lawyer and get advice on your own situation. We can’t provide legal advice here, and this isn’t intended as legal advice. It is best, if possible, to establish a relationship with an attorney before a workplace issue turns into a crisis.