It finally happened. After years of debate on Beacon Hill, Massachusetts law makers agreed to reform the Commonwealth’s treatment of noncompetition agreements. Among other things, the bill precludes enforcement of noncompetition agreements against non-exempt employees, limits their length to just 12 months, and precludes the use of “continued employment” as acceptable consideration. If signed by the Governor, the bill will apply to agreements entered into on or after October 1, 2018.
A federal district court gave teeth to a ninety-day notice provision by enforcing a ninety-day non-compete that was triggered in the event the employee chose to resign without notice.
Employers and employees alike often ask how much consideration is required to support a non-compete. A recent case suggests that a Garden Leave clause -- a promise to pay the employee's salary for the duration of the non-compete -- is adequate.