All Stainless, Inc. Colby, 364 Mass. 773 (1974) “A contract that is not included in a personal services contract is applied if it is reasonable, based on all the circumstances.” Fortunately, the legislature recently passed a new law for Massachusetts staff that clarifies the applicability, treatment and enforcement of competition prohibitions under national law. Gov. Charlie Baker signed the law on August 10, 2018, with the law coming into effect on October 1, 2018. Since the new law imposes certain restrictions on the types of non-compete clauses that employers can impose, you can be sure that employers will redouble their efforts to develop strong non-compete clauses that benefit their own business interests. This means that as an employee, you should immediately consult a Massachusetts lawyer about your current employment relationship and future applications for signing this type of contract. In addition, you may find it useful to review some of the broad implications of the new status. [A)n Agreement between an employer and a worker or, in another way, an existing or expected employment relationship in which the expected worker or worker agrees that the worker will not engage in certain specific activities that are competitive with the worker`s employer after the end of the employment relationship. Non-competition agreements must also include a “garden holiday” clause or any other form of mutually agreed review.

This type of clause requires the employer to pay the worker at least 50 per cent of his or her highest salary over the past two years during the period of competition. A Brief History of Non-Competition in Massachusetts,, April 10, 2014 Outlines the History of Non-Compete Bans of 1711-2014 Only a Reasonable Agreement Is Enforced by Massachusetts Courts. The adequacy is examined objectively and takes into account the circumstances of the parties and the public interest. Non-competition agreements must not exceed a reasonable period of time set by law beyond one (1) year after the end of the worker`s employment. This is an exception in cases where a worker violates a retention obligation, with a duration of two (2) years. Calculating the amount of the “garden holiday” clause: to comply with the garden leave clause, there must be provisions relating to the rate of pay for the period covered by the non-competition agreement. The law imposes a rate of at least half the salary, as measured by the highest salary paid to the employee in the two years before the worker`s dismissal. However, employers and workers may accept another amount that replaces the legal design clause.

To be valid, the amount must be agreed upon and explicitly stated in the non-competition agreement. Agreements against competition in franchise agreements, ABA, 2012. When a non-competition agreement is entered into in violation of the new law, a court is allowed to cancel the entire agreement or to reform or revise the agreement to be valid and enforceable to the extent necessary to protect applicable legitimate business interests.