Massachusetts enacted the Non-Competition Agreement Act in 2018, creating some of the most employee-friendly non-compete rules in the US for agreements entered after October 1, 2018. Critically, employers must now pay "garden leave" — at least 50% of your base salary during the restriction period — unless they offer other mutually agreed consideration. Many employers have simply stopped using non-competes in Massachusetts as a result.
What is a Enforceability?
A non-compete agreement under Massachusetts law (M.G.L. c. 149, section 24L) must meet strict requirements to be enforceable: it must be in writing and signed; provide at least 10 days notice before the start of employment or the effective date; be supported by a garden leave clause (at least 50% base salary during the restricted period) or other mutually agreed consideration; and not exceed 1 year in duration. Certain categories of workers are entirely exempt: non-exempt employees under the FLSA, employees who are 18 or younger, undergraduate or graduate students, and employees terminated without cause or laid off.
Red flags to watch for
Massachusetts law requires the employer to pay at least 50% of your base salary during the non-compete period, or provide other mutually agreed consideration. A non-compete without this is unenforceable.
Massachusetts caps non-competes at 12 months from the date of separation. Any longer restriction is void.
For new hires, the non-compete must be provided with the offer letter or at least 10 business days before the start date. Last-minute signing voids the agreement.
The Massachusetts Non-Competition Agreement Act specifically exempts employees classified as non-exempt under the FLSA (typically hourly workers). A non-compete presented to an hourly employee is unenforceable.
If you are terminated without cause or laid off, a non-compete is unenforceable even if you signed one. This is a significant protection that many employees do not know about.
Your legal rights
Under M.G.L. c. 149, section 24L, a non-compete is only enforceable if: it protects a legitimate business interest (trade secrets, confidential information, goodwill); the restrictions are reasonable in time (max 12 months), geographic scope, and scope of activities; and the employer pays garden leave of at least 50% of base salary during the restricted period (or provides other agreed consideration). Employees terminated without cause or laid off cannot be held to a non-compete. Violations by employers expose them to injunctive relief, lost wages, and attorney fees.
Questions to ask before you sign
- 1Does the employer commit to paying me during the non-compete period, and how much?
- 2Is the duration 12 months or less?
- 3Was I given 10 days notice before signing, or is this being presented at the last minute?
- 4Am I classified as exempt or non-exempt under the FLSA?
- 5What happens to the non-compete if I am laid off or terminated without cause?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.