Just before midnight on July 31, 2018, the last day of its legislative session, the Massachusetts Legislature passed a significant bill regulating the use of non-compete agreements in the Commonwealth. Today, August 10, 2018, Governor Charlie Baker signed that bill into law.
In an article dated August 1, 2018, we examined the key aspects of the new law. We identified certain issues with the law that might lead to inconsistent enforcement by the courts (e.g., ambiguous consideration requirements, a conflicting and potentially unenforceable venue provision, etc.). Although Governor Baker could have rejected the bill or demanded further changes, it is no surprise that he signed it as written, given the amount of time, effort, and compromise that it took to get to this point. Moving forward, we hope that the Legislature will pay close attention to the courts as they interpret the law, and push for amendments where they are needed.
Companies and other readers are encouraged to return to this Blog for periodic updates and analysis regarding the Massachusetts non-compete law, as well as to contact a Jackson Lewis attorney for related legal assistance in drafting, enforcing and interpreting non-competition agreements under Massachusetts law.