Massachusetts Enacts Non-Compete Agreement Reform
On August 10, 2018, Massachusetts Governor Charlie Baker signed a law significantly changing the landscape for entering into and enforcing non-competition agreements with Massachusetts-based employees (the “Massachusetts Non-Compete Law” or the “Law”). Most notably, the Massachusetts Non-Compete Law limits the term of covered post-employment non-compete agreements to 12 months and requires that an employer pay the former employee at least 50% of his or her base salary during the non-compete period unless the parties otherwise agree. This Alert summarizes key provisions of the law.