Proponents in the Massachusetts Legislature may have lost several battles, but they have not given up the war. Early in the current legislative session, no fewer than six proposed laws to regulate noncompetition agreements were introduced. All were referred to one committee or another, where each is now under review. Given the past history of legislative failure and the varied approaches sponsors are taking in 2017, it’s hard to say whether a law on noncompetition agreements will ever be reported to the House or Senate floor for an up or down vote. If one is, it will likely contain several of the following limitations, each of which appears in one proposed law or another.
One proposal is an outlier and would ban noncompetition agreements altogether. It would not, however, restrict employers from enforcing covenants that restrict solicitation of employees or customers. Neither would it limit non-disclosure agreements, forfeiture agreements, or non-competes that are formed in connection with the sale of a business.