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Massachusetts Employment Contracts: Non-Compete Restrictions and Rights

Quick Answer: Massachusetts significantly restricts non-compete agreements under the 2018 Massachusetts Noncompetition Agreement Act. Non-competes must include garden leave or other mutually-agreed consideration, are limited to 12 months, and cannot apply to certain workers. These are among the nation’s strongest restrictions.

Massachusetts provides significant protection against overly restrictive employment agreements.

Massachusetts Employment Contract Overview

At-Will Default

General rule:

  • Employment is at-will
  • Contracts can modify
  • Strong public policy exceptions

2018 Non-Compete Reform

Major changes:

  • Garden leave or consideration required
  • 12-month maximum duration
  • Protected categories of workers
  • Geographic limitations
  • Significant restrictions

Types of Employment Agreements

Non-Compete Agreements

Significantly restricted:

  • Must meet statutory requirements
  • 12-month maximum
  • Consideration required
  • Many workers exempt

Non-Disclosure Agreements (NDAs)

Still enforceable:

  • Protect trade secrets
  • Confidential information
  • Less restricted than non-competes

Non-Solicitation Agreements

May be enforceable:

  • Customer non-solicitation
  • Employee non-solicitation
  • Subject to reasonableness

Severance Agreements

Provide:

  • Payment upon termination
  • Release of claims
  • Subject to requirements

Massachusetts Non-Compete Law (2018)

Key Requirements

Non-competes must:

  • Be in writing
  • Be signed by both parties
  • State employee’s right to counsel
  • Expressly reference the law
  • Be provided before employment starts (or with consideration for current employees)

Garden Leave Requirement

Must provide either:

  • Garden leave (50% of base salary)
  • Other mutually-agreed consideration
  • Required for enforceability

12-Month Maximum

Duration limit:

  • Cannot exceed 12 months
  • Reduced from common 2+ years
  • Significant reform

Geographic Limitations

Must be:

  • Reasonable in scope
  • Limited to areas where employee worked
  • Cannot be overly broad

Who Cannot Be Bound

Exempt Workers

Non-competes void for:

  • Nonexempt employees (hourly)
  • Employees terminated without cause
  • Employees laid off
  • Employees 18 or younger
  • Undergraduate/graduate students (interns)
  • Workers classified as independent contractors

Healthcare Workers

Special rules:

  • Cannot restrict physician practices
  • Patient continuity protections

Non-Solicitation Agreements

Customer Non-Solicitation

May restrict:

  • Contacting customers you served
  • Must be reasonable
  • Less restricted than non-competes

Employee Non-Solicitation

May restrict:

  • Recruiting former coworkers
  • Generally more enforceable
  • Still subject to reasonableness

Severance Agreements

What They Include

Common terms:

  • Severance payment
  • Release of claims
  • Non-disparagement
  • Confidentiality

OWBPA (40+ Workers)

Requirements:

  • 21 days to consider
  • 7 days to revoke
  • Advise attorney consultation

Chapter 151B Claims

Release requirements:

  • Must be knowing and voluntary
  • Adequate consideration
  • Clear language

Common Scenarios

Scenario 1: Non-Compete Without Garden Leave

Situation: Signed non-compete with no garden leave provision.

Analysis: May be unenforceable under 2018 law. Consult attorney.

Scenario 2: 2-Year Non-Compete

Situation: Non-compete says 2 years.

Analysis: Maximum is 12 months. Likely unenforceable beyond that.

Scenario 3: Hourly Worker Non-Compete

Situation: Hourly employee asked to sign non-compete.

Analysis: Non-competes void for nonexempt employees.

Scenario 4: Fired and Non-Compete

Situation: Terminated without cause, have non-compete.

Analysis: Non-competes void for employees terminated without cause.

Scenario 5: Existing Non-Compete

Situation: Signed non-compete before 2018.

Analysis: Old agreements may still be analyzed under prior law. Consult attorney.

Enforcement

If Employer Sues

Employee defenses:

  • Statutory requirements not met
  • Protected category
  • Unreasonable scope
  • No consideration

Blue Penciling

Courts may:

  • Modify unreasonable terms
  • But statutory violations may void entirely

Frequently Asked Questions

Are non-competes enforceable in Massachusetts?

Yes, but with significant restrictions under the 2018 law.

What is garden leave?

Continued payment (50% base salary) during restricted period.

How long can a non-compete last?

Maximum 12 months.

Can hourly workers have non-competes?

No. Non-competes are void for nonexempt employees.

What if I was fired?

Non-competes are void for employees terminated without cause.

Related Topics

Take Action

Before signing or being enforced against:

  1. Review agreement against 2018 law
  2. Check if you’re in exempt category
  3. Verify consideration/garden leave
  4. Note 12-month limit
  5. Consult employment attorney

Legal Disclaimer

This article provides general information about employment contracts in Massachusetts and is not legal advice. For specific advice, consult a licensed Massachusetts employment attorney.

For official information: