A Massachusetts non-compete agreement could be an effective way for a business to protect its confidential information. An employer can use a non-compete agreement in Massachusetts to prevent an employee from taking his or her knowledge to a competitor for a certain amount of time after leaving the business. An employer can also use a non-compete agreement to specify what information is considered confidential and cannot be shared.
Is a Non-Compete Legally Enforceable in Massachusetts?
Yes, a non-compete agreement is legally enforceable in Massachusetts. You can use it to protect your confidential information by preventing an employee from sharing the information they learned at your business with your competitors; however, if you want your non-compete agreement to be enforceable, you need to understand the rules and limitations. [1]
What’s Protected?
There are several examples of information that can be protected by a Massachusetts non-compete agreement. For example, trade secrets vital to the interest of business can be protected by a non-compete agreement. Other types of confidential information related to the company can also be shielded by a non-compete agreement. Finally, any goodwill shown by the company can also be protected by a non-compete agreement in MA.
Reasonable Use and Exemptions
In Massachusetts, a non-compete agreement must be narrowly tailored to protect legitimate business interests. It has to be limited in time, space, and scope. If a non-compete agreement is not consistent with public policy, then it could be thrown out. In addition, requirements added in 2018 require that both parties must be given adequate notice. The employee has to be given at least 10 business days to review the non-compete agreement and be given the opportunity to speak with legal counsel before signing the agreement.
Furthermore, there are several categories of employees who cannot be required to sign a non-compete agreement. They include broadcasters, physicians, nurses, social workers, psychologists, students, interns, short-term employees, and FLSA nonexempt employees.
- Enforceable when terminated without cause? No, if signed in or after 2018. Yes, if signed before 2018.
- Employee non-solicitation agreement permitted? Yes
- Customer non-solicitation agreements permitted? Yes
- Does continuing employment equal sufficient consideration? No [1]
Non-Compete Agreement Massachusetts Limitations
There are some limitations related to Massachusetts non-compete agreements that have to be followed. If these Agreements are not followed, the non-compete agreement might not be considered enforceable.
Limitations on time
In the event of a breach of a non-compete agreement signed in Massachusetts, you have 6 years to bring a lawsuit.
Non-compete agreement Massachusetts geographical limitations
There are no hard and fast geographical limits on non-compete agreements signed in Massachusetts; however, it has to be consistent with the public interest and they cannot create an undue burden on employees. If it does, then a judge could decide to throw out the agreement.
Massachusetts Non-Compete Agreement Sample
You may want to use a sample to help you draft you are non-compete agreement in Massachusetts. Take a look at our Massachusetts non-compete agreement sample, and download it in either Word or PDF format to make sure you don’t miss anything in your document:
Non-Compete Agreement
