Massachusetts Non-Compete Law

Summary

Massachusetts strictly limits the use of 'non-compete' agreements, banning them entirely for certain workers and requiring employers to pay 'garden leave' if they want to enforce them.

Rights & Rules

01.
Employers CANNOT force hourly workers (non-exempt under the FLSA), undergraduate students, or employees who have been laid off or terminated without cause to sign a non-compete agreement.
02.
For eligible employees, a non-compete cannot last longer than 1 year after the employee leaves.
03.
If a company wants to enforce a non-compete to stop you from working for a rival, they MUST pay you 'garden leave'—which means paying you 50% of your highest annualized salary during the restricted period while you sit at home.
04.
The agreement must be strictly limited to the geographic area where you actually worked or had a material presence.

Penalties

01.
Non-compete agreements that violate these rules are legally void and completely unenforceable in court. Judges in MA are legally required to strike them down.

Verified Citations

Massachusetts General Laws Chapter 149, Section 24L

Source

"A noncompetition agreement shall not be enforceable against the following types of workers: (i) employees who are classified as nonexempt under the Fair Labor Standards Act... (iii) employees that have been terminated without cause or laid off..."