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Governor Baker signs law updating the non-compete rules in MA

By September 24, 2018Personal Insurance

See below for a couple of highlights from the new law:

  1. It goes into effect on October 1, 2018. Any new non-compete agreements from that date forward must meet the new requirements
  2.  It covers both employees and independent contractors.
  3. Non-competes are now limited to 12 months, unless the employee has done something unethical like stealing information or breaching fiduciary duties.
  4.  To enforce a non-compete, the employer generally must pay the employee 50% of his or her salary during the restriction period.
  5. Non-competes are banned for anyone 18 or younger, nonexempt employees, undergraduates and graduate students who are not working full time, and employees who are terminated without cause of laid off.

These are just a few highlights from the new bill should you have any questions please contact a local attorney for a complete understanding. This is also a good time to check in on your EPLI policies and be sure you are protected!