Non-compete agreements are enforceable in Massachusetts, but only under strict conditions. Specific state laws limit how and when employers can use these agreements.
If you are dealing with a non-compete clause, our Boston non-compete agreement lawyer will explain your rights and whether your agreement is legally enforceable. You can start with a free consultation to learn how we can help your situation.
What Is a Non-Compete Agreement?
A non-compete agreement is a contract between an employer and an employee that restricts the employee from working for a competitor or starting a similar business for a certain period after leaving their job.
These agreements aim to protect a company’s trade secrets and business interests but must be reasonable under Massachusetts law.
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Massachusetts Laws on Non-Compete Agreements
In Massachusetts, the Noncompetition Agreement Act (G.L. c. 149, § 24L) sets strict rules for when a non-compete is valid:
- It must be in writing and signed by the employer and the employee.
- The employee must receive it before starting the job or with an offer of separate compensation if signed after employment begins.
- It cannot last longer than 12 months in most cases.
- It must be necessary to protect legitimate business interests, such as trade secrets or confidential information.
- It must be fair and reasonable in terms of geography and time.
What Is ‘Garden Leave’ in a Massachusetts Non-Compete?
Massachusetts requires most non-compete agreements to provide “garden leave” or other compensation. Garden leave means the employer must pay at least 50% of the employee’s highest annual salary during the restricted period.
However, some employers try to bypass this rule or offer unfair terms. If your employer is not offering proper compensation, your agreement may be invalid. A lawyer can help you challenge unfair restrictions.
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Who Is Protected From Non-Compete Agreements?
Massachusetts law prohibits employers from forcing non-compete agreements on:
- Employees who are non-exempt under the Fair Labor Standards Act (FLSA).
- Workers who are laid off or fired without cause.
- Certain professionals, such as doctors, lawyers, and social workers.
If you fall into one of these categories, your employer cannot legally enforce a non-compete agreement against you.
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When Are Non-Compete Agreements Enforceable?
A non-compete agreement in Massachusetts is enforceable only if it meets all legal requirements. Courts look at several factors, including:
- Whether the restrictions are reasonable in scope and time.
- Whether it protects a legitimate business interest (such as trade secrets).
- Whether the employer provided fair compensation (often called “garden leave” pay).
If any of these conditions are missing, a court may decide that the agreement is unenforceable.
What Happens If You Violate a Contract With a Non-Compete Clause?
If you break a valid non-compete agreement, your former employer could:
- Seek a court order to stop you from working for a competitor.
- Sue you for financial damages if they can prove harm.
However, if the agreement does not follow Massachusetts law, it may not hold up in court. Our non-compete agreement lawyer can review your case and fight to protect your rights.
Can You Challenge Restrictions on Post-Employment Work?
You can challenge a non-compete agreement in Massachusetts if:
- The agreement is too broad in scope or duration.
- Your employer did not provide proper compensation for signing.
- It unfairly limits your ability to work in your field.
Our Boston labor and employment lawyer will evaluate your situation and take legal action if your agreement is unfair or illegal.
How We Can Help You With a Non-Compete Agreement
If you are facing a non-compete agreement in Massachusetts, our lawyers at Duddy, Goodwin & Pollard can:
- Review your contract to determine if it is enforceable.
- Negotiate with your employer to modify or remove unfair restrictions.
- Defend you in court if your employer sues you over a non-compete violation.
We believe in holding corporations accountable and fighting for workers’ rights. Our firm works on a contingency basis, meaning you pay nothing unless we help you win your case.
Can a Non-Compete Contract Affect Future Job Opportunities?
Yes, a strict non-compete agreement can make it challenging to find work in your industry. Even if you find a job, your former employer may try to block you from working if they believe you are violating the agreement.
If a non-compete contract is keeping you from advancing your career, we will fight back and protect your rights.
Does the FTC’s Non-Compete Ban Apply to Workers in Massachusetts?
In April 2024, the Federal Trade Commission (FTC) announced a rule to ban most non-compete agreements nationwide. This rule aimed to invalidate existing non-competes for most workers and prohibit employers from creating new ones.
However, a federal court in Texas blocked the rule in August 2024, ruling that the FTC did not have the authority to enforce such a ban. Because of this legal challenge, the rule did not go into effect as planned on September 4, 2024.
For now, Massachusetts law continues to govern non-compete agreements. Employers can still enforce them if they meet the state’s legal requirements. This means if you are facing a non-compete dispute, state law—not federal law—determines whether your agreement is valid.
Call Us to Learn if a Non-Compete Agreement Is Enforceable in Massachusetts
If you have questions about whether your non-compete is enforceable in Massachusetts, we can help. Duddy, Goodwin & Pollard believe in holding corporations accountable when they do not treat their employees fairly.
Our firm advocates for social justice and stays up to date on legal changes and can protect your right to work. We will protect your rights and your career. Call us today for a free consultation.
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