Massachusetts Legislature Considering A Restriction on Noncompetition Agreements

In a recent development in the Massachusetts state legislature, a bill that addresses the practice of non-compete agreements in the state is gaining traction - HB No. 1715 would restrict non-compete agreements in the state. According to Section 1(a) of the bill, “the Commonwealth of Massachusetts has determined that an employee noncompetition agreement restricting an employee’s mobility for longer than six months is a restraint on trade and harms the economy.” The bill’s language does create two noteworthy exceptions: (1) it allows for noncompetition agreements if the term is six months or less; and (2) the bill does not necessarily apply to employees that “at any time, received annual taxable compensation from the employer of $250,000 or more.” Recently, HB No. 1715 has been referred to the Joint Committee on Labor and Workforce Development. State officials believe that restricting non-competes in this way will foster mobility within the Massachusetts workforce and increase competition.

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