After years of debate, the Massachusetts legislature late
last night passed a comprehensive noncompete reform law. If,
as expected, Governor Baker signs the bill in the next 10
days, it will take effect on October 1, 2018 and apply to
agreements executed after that date. (It does not apply
retroactively to existing agreements.)
As the summary below makes clear, the law represents a
compromise between those who believe noncompetes should be
abolished because they are fundamentally unfair to employees and
bad for the Massachusetts economy, and those who believe
noncompetes serve a legitimate business purpose when used in a
reasonable manner.
Coverage and Application
The law applies to employees and independent contractors who
are, or have been for at least 30 days immediately prior to
termination, a resident of or
employed in Massachusetts. Employers cannot
avoid the new law by including a choice of law provision requiring
a different state's law to apply.
