Massachusetts Non-Compete Agreement
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Massachusetts Legal Requirements
Key MA statutes and obligations that apply to your non-compete agreement.
Requirements
- Governed by MGL c.149 § 24L (Massachusetts Non-Compete Agreement Act, effective October 1, 2018)
- Must not exceed 1 year in duration (or 2 years for breach or garden leave situations)
- Must provide 'garden leave' pay — 50% of base salary during the restriction period — OR equivalent consideration
- Must be provided at least 10 business days before hire or promotion and signed separately
- Cannot apply to nonexempt employees, employees terminated without cause, or certain other workers
- Must be reasonable in geographic scope and scope of restricted activities
Restrictions & Limits
- Non-competes are void for: nonexempt employees, employees laid off or terminated without cause, undergraduate/graduate students, and employees under 18
- A garden leave alternative to the 1-year limit allows 2-year agreements if garden leave pay is provided
- Choice-of-law clauses in non-competes for MA-based employees must apply Massachusetts law
Official Statute References
Primary Massachusetts statutes governing this document type.
Massachusetts Non-Compete Agreement FAQ
Common questions about non-compete agreements under Massachusetts law.
What is Massachusetts' Non-Compete Agreement Act?
The Massachusetts Non-Compete Agreement Act (MGL c.149 § 24L) took effect October 1, 2018 and created strict requirements: (1) maximum 1-year duration, (2) garden leave pay of 50% of base salary or other mutually agreed consideration, (3) must be provided 10+ business days before signing, (4) not enforceable against hourly workers, students, or employees terminated without cause.
What is 'garden leave' pay in a Massachusetts non-compete?
Garden leave pay requires the employer to continue paying the employee at least 50% of their base salary during the non-compete restriction period. This is the quid pro quo for restricting the employee's ability to work. Alternatively, parties can agree to 'other mutually-agreed consideration,' but courts scrutinize whether this is adequate.
Can a non-compete apply to an employee fired without cause in Massachusetts?
No. Under MGL c.149 § 24L(c)(4), non-compete agreements are unenforceable against employees who are terminated without cause. An employee laid off or fired without good reason is free from any non-compete obligation, regardless of what the agreement says.
Can a Massachusetts employer use another state's law to enforce a non-compete?
No. Under MGL c.149 § 24L(g), a choice-of-law clause in a non-compete that applies another state's law to a Massachusetts-based employee is void. Massachusetts law governs. Employers cannot evade the Act by choosing a more permissive state's law.
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Non-Compete Agreement by State
Laws vary significantly by state. Find the right form for your location.
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