Massachusetts Non-Compete Agreements: What You Need to Know
If you`re looking for a job in Massachusetts, it`s important to understand non-compete agreements. Non-compete agreements are contracts that prohibit an employee from working for a competitor or starting a competing business after leaving their current employer. Massachusetts has recently updated its non-compete laws, which means it`s more important than ever to be informed.
What is a Non-Compete Agreement?
A non-compete agreement is a contract between an employer and employee that limits the employee`s ability to compete with the employer after they leave. This can include working for a competitor or starting a competing business. Non-compete agreements are often used to protect trade secrets, confidential information, and customer relationships.
What are the New Massachusetts Non-Compete Laws?
As of October 2018, Massachusetts has updated its non-compete laws. The new laws require that non-compete agreements meet certain criteria in order to be enforceable. These criteria include:
– The agreement must be in writing and signed by both the employer and employee.
– The agreement must state that the employee has the right to consult with legal counsel before signing.
– The agreement must be presented to the employee when the job offer is made or at least 10 days before the start of employment.
– The agreement cannot be overly broad in scope, duration, or geographic area.
– The agreement cannot be used to prevent an employee from earning a living.
What Does This Mean for Employees?
If you`re an employee in Massachusetts, the new non-compete laws mean that you have more protections and rights. Employers can no longer use non-compete agreements to prevent you from earning a living or working in your chosen field. Additionally, you have the right to review the agreement and consult with legal counsel before signing.
What Does This Mean for Employers?
If you`re an employer in Massachusetts, the new non-compete laws mean that you need to carefully review and revise your non-compete agreements. You can no longer use overly broad agreements that prevent employees from earning a living or restrict them from working in their chosen field. Additionally, you need to ensure that the agreement is presented to the employee at the appropriate time and that they have the opportunity to review and consult with legal counsel.
Non-compete agreements are an important part of employment contracts, but they need to be fair and reasonable for both employers and employees. With the new Massachusetts non-compete laws, it`s more important than ever to be informed and ensure that agreements meet certain criteria to be enforceable. As a job seeker or employer in Massachusetts, it`s important to understand the new laws and seek legal counsel if necessary.