Non-Compete Agreements in Massachusetts: 2018 Reform Rules

Massachusetts's 2018 Landmark Reform

The Massachusetts Noncompetition Agreement Act (MNAA), effective October 1, 2018, significantly reformed non-compete law. Codified at M.G.L. c. 149, Section 24L, it introduced some of the most employee-protective provisions in the country.

Key Requirements Under the MNAA

For non-competes signed on or after October 1, 2018:

• One-year maximum duration (two years if the employee breached a fiduciary duty or stole property)
• Garden leave required: The employer must either pay the employee at least 50% of their highest base salary during the restricted period, or provide "other mutually agreed-upon consideration"
• Must be in writing and signed by both parties
• Must be provided before a formal offer of employment or 10 business days before start date, whichever is earlier
• For existing employees, must be provided 10 business days before the effective date and supported by fair and reasonable consideration independent of continued employment

Who Cannot Be Subject to Non-Competes

The MNAA prohibits non-competes for:

• Non-exempt employees under the Fair Labor Standards Act
• Undergraduate or graduate students in internships or short-term employment
• Employees terminated without cause or laid off
• Employees under 18

This last point is significant: if you are laid off or terminated without cause, your non-compete is unenforceable regardless of what you signed.

Reasonableness Requirements

Even with statutory compliance, the non-compete must still be:

• Reasonable in geographic scope (limited to where the employee provided services or had influence)
• Necessary to protect legitimate business interests (trade secrets, confidential information, goodwill)
• Consonant with public policy

Red Flags

• No garden leave payment or mutually agreed consideration
• Duration exceeding one year
• Presented after the employee already accepted the job
• Applied to non-exempt or hourly employees
• No written agreement signed by both parties
• Employer attempting to enforce after a layoff or termination without cause

When to Consult a Lawyer

Consider consulting a Massachusetts employment attorney if your non-compete does not include a garden leave provision, if you were terminated without cause, or if the agreement was not provided with adequate advance notice. The MNAA's specific requirements create multiple potential grounds for challenge.

This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.