Massachusetts has now joined a number of other states in establishing significant restrictions on the use of noncompete agreements with enactment of the Massachusetts Noncompetition Agreement Act.
The new law, which was appended to an economic development bill signed by Governor Charlie Baker, generally limits noncompete agreements to one year and requires that they be supported by a “garden leave” clause or other agreed upon consideration. The new law will be effective for agreements entered into on or after October 1, 2018.
Other states that we are aware of with statutory restrictions on the use of noncompete agreements include California, North Dakota, Oklahoma, Oregon, and Utah.
Members of the Center for Workplace Compliance (CWC) can read more here.