The Massachusetts non-compete and non-solicitation agreement is a contract that occurs between an employer and an employee in which the employee agrees that they will not engage in certain competitive activities with the employer after the employment has ended. The employer must give the employee ten (10) days notice, along with a copy of the contract before demanding that an employee signs a non-compete agreement. Furthermore, to be effective as of October 1st, 2018, the “garden leave” clause of the new law (MGL c.228, §24L) requires employers to pay the employee half of their highest salary from the last two (2) years of employment for the duration of the non-compete agreement. The non-solicitation clause of the contract inhibits the employee from hiring employees from under the employer and misappropriating client relationships for a set duration following their termination.

Laws – MGL c.149, § 24L (added by St.2018, c.228, § 21)

Non-Compete Limit – Agreements must be one (1) year or less in duration and limited to the geographic areas in which the employee provided services within the last two (2) years.

Non-Solicitation Limit – One (1) year.