On August 10, 2018, Governor Baker signed into law a bill containing sweeping changes to non-compete agreement regulations, effectively limiting their enforceability. These new regulations will create strict requirements that these non-competes must meet, and will limit their duration and effectiveness.
The law applies to post-employment non-competes entered into on or after October 1, 2018 by Massachusetts employees and residents. Some notable changes include:
i. making employees exempt in numerous circumstances;
ii. limiting duration of applicability;
iii. creating formalities which must be complied with upon entering into the agreement;
iv. requiring employers to compensate employees during the restriction period.
This blog will continue to follow the progression of these changes as legislation comes forth and the courts begin to litigate these regulations.
