On June 23, 2015, the Massachusetts Legislature’s Joint Committee on Labor and Workforce Development held hearings on a series of bills that would further restrict or even eliminate an employer’s ability to use and enforce non-competition clauses in employment contracts. Right now, the Massachusetts courts do allow non-competes that are reasonable in scope, duration and geographic area. See http://www.betaboston.com/news/2015/06/23/tech-sector-to-revive-noncompete-debate/
Small business owners and managers doing business in Massachusetts who value non-competition clauses as a way of protecting their business should pay close attention to the outcome of these hearings and any related further legislative developments. As of now, it is unclear what position Governor Charlie Baker will take on this issue. Given his priority of controlling state government expenditures, however, it is quite possible he could agree to non-competition restrictions or elimination as a means of negotiating budget cuts with the generally liberal legislature.
According to the Boston Globe's coverage of the hearings, they were dominated by witnesses from the tech sector seeking to eliminate or at least further restrict non-competition agreements. See http://www.betaboston.com/news/2015/06/23/tech-workers-turn-out-on-beacon-hill-to-decry-noncompetes/?p1=Main_Headline
Small business owners and managers doing business in Massachusetts who value non-competition clauses as a way of protecting their business should pay close attention to the outcome of these hearings and any related further legislative developments. As of now, it is unclear what position Governor Charlie Baker will take on this issue. Given his priority of controlling state government expenditures, however, it is quite possible he could agree to non-competition restrictions or elimination as a means of negotiating budget cuts with the generally liberal legislature.
According to the Boston Globe's coverage of the hearings, they were dominated by witnesses from the tech sector seeking to eliminate or at least further restrict non-competition agreements. See http://www.betaboston.com/news/2015/06/23/tech-workers-turn-out-on-beacon-hill-to-decry-noncompetes/?p1=Main_Headline