Non-Compete Legislation: Down to the Wire Again

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On July 25, 2018, the Massachusetts Senate passed an Economic Development bill that revives the long-debated issue of non-compete legislation in the Commonwealth.

As this blog reported earlier this year, the Joint Committee on Labor and Workforce Development submitted a new bill, H.B. 4419, addressing non-competes in place of six bills filed last year. The non-compete language contained in the Senate’s Economic Development bill tracks that of H.B. 4419, including a key provision mandating “garden leave” payments or “other mutually-agreed upon consideration” to an employee during the restricted period following the termination of the employment relationship; a provision requiring advance notice of the non-compete to employees; a provision requiring additional consideration for a non-compete entered into after the commencement of employment; and a provision codifying existing law permitting courts to reform overbroad non-competes.

The Massachusetts House of Representatives’ Economic Development bill, passed two weeks ago, did not contain any provisions relating to non-competes. As a result, this issue will be decided by a House/Senate Conference Committee. With the end of the legislative session looming on July 31, the House and Senate have a very short window to come to a decision.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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