Massachusetts Act Dramatically Changes The Business Landscape

Massachusetts just passed an economic development bill that will significantly impact Massachusetts businesses. The three most important changes relate to noncompetes, trade secrets, and patent infringement claims.

Changes to Noncompetes

The law imposes new requirements on noncompetes:

• Noncompete agreements must be in writing;
• Offerees must receive the noncompete by the earlier of any formal offer or 10 days before employment starts;
• New noncompetes for existing employees require actual consideration;
• Hourly employees, minors, and employees terminated without cause cannot be held to a noncompete;
• No noncompete can extend beyond a year; and
• Employers enforcing noncompetes must pay "garden leave" (half the employee's salary) or negotiate other compensation.