Non-Competes To Stay In Massachusetts…For Now

This morning, Massachusetts woke up to what is becoming a regular occurrence: the legislature was unable to pass a bill limiting the use of non-competition agreements in the Commonwealth, although it came the closest it has in years. On June 29, 2016, the House unanimously passed a bill that would have drastically changed the landscape for non-competes in Massachusetts. Weeks later, on July 14, the Senate passed its own bill, but with several significant differences. The House rejected the Senate bill, and on July 18, the bill went to conference.

The House and Senate conferees worked right up to the July 31 midnight deadline, but were unable to reach a compromise. The sticking point appears to be what is known as "garden leave" – a requirement that an employer pay the former employee for the time restricted from working because of a non-compete. The Senate bill called for employees to receive 100% of their compensation during the restricted period, while the