Massachusetts Adopts New Requirements for Noncompete Agreements

August 13, 2018

Effective October 1, 2018 all non-compete agreements must include a “garden leave” clause entitling the employee to pay during the restrictive period. This pay must equal at least 50 percent of the employee’s highest annualized base salary over the previous two years. Additionally, agreements cannot exceed a 12-month restrictive period. The employer must provide current employees some payment or benefit other than the promise of continued employment in exchange for the promise not to compete. We recommend all employment-related agreements be reviewed by SESCO to ensure legal compliance.