Boston Non-Compete Agreement Lawyer
Whether you are an employer seeking to implement effective non-compete agreements or an employee evaluating the enforceability of an existing agreement, our legal team specializes in interpreting, negotiating, and litigating non-compete agreements, ensuring our clients’ interests are safeguarded.
Courts frequently scrutinize such non-compete and non-competition agreements, recognizing the delicate balance required by law. While employers have legitimate rights to safeguard their interests, the legal system also acknowledges the importance of preserving employees’ rights to pursue meaningful employment opportunities after concluding their tenure with an employer.
What are Non-Compete Agreements and Are They Enforceable?
A non-compete agreement, also known as a non-compete clause or covenant not to compete, is a legal contract between an employer and an employee that attempts to restrict the employee’s ability to engage in competing business activities after the termination of employment.
This agreement aims to protect the employer’s business interests, trade secrets, and/or client relationships by preventing the departing employee from working for a direct competitor or starting a competing business within a specified time frame and geographic area. Non-compete agreements typically outline the prohibited activities, duration of the restriction, and geographical scope.
Are Non-Compete Agreements Enforceable?
The enforceability of non-compete agreements is subject to legal considerations. In 2018, Massachusetts enacted a law that imposed substantial restrictions on such agreements, whereas previously courts relied on case precedent in determining whether to enforce a non-compete agreement.
This legislation established a limitation on the duration of non-competition arrangements to a maximum of twelve months, with exceptions only in the case of a breach. Additionally, the law expressly prohibits non-compete clauses for non-exempt employees, such as hourly workers eligible for overtime.
For a non-compete agreement to be considered valid and enforceable against an employee, it must include certain criteria required by statute in Massachusetts. Some of the requirements include the following, but additional items are required, and competent legal counsel should be consulted:
- Mutual Signature: Both parties must sign the non-competition agreement.
- Right to Legal Review: The language should explicitly state the employee’s right to have an attorney review the agreement.
- Consultation Period: The employee is entitled to 10 days to consult with a lawyer before being required to sign the agreement.
- Duration Limits: Restrictions on competition cannot exceed 12 months unless the employee misappropriated trade secrets.
- Avoiding Excessiveness: The agreement should not be overly broad in scope, geographic limitations, and prohibited activities.
Other Issues Considered When Determining the Validity of a Non-Compete Agreement
When assessing the validity of a non-compete agreement, factors beyond the basic criteria outlined above must be considered. The nature of the work plays a pivotal role, requiring the company to demonstrate substantial investments, such as years of training, to justify the imposition of restrictive clauses.
The length of time covered by severance agreements becomes a consideration, as these agreements, inclusive of non-competition clauses, fall outside the purview of standard non-competition laws.
The geographic scope is also a determining factor, for example, if a former company exclusively operated within a single city, a court may likely permit immediate employment with another employer in a different city, acknowledging the limited geographical impact of the previous business operations.
Contact Our Boston Non-Compete Agreement Attorneys
When it comes to enforcing or challenging the validity of non-compete agreements in Boston, our non-compete agreement attorneys at Rudolph Friedmann LLP help to ensure you have the necessary expertise by your side. With our in-depth knowledge of non-competition agreements, our legal team can guide you through the complexities. Whether you are considering accepting such an agreement, are facing the challenges of its enforceability, or are an employer seeking to implement and/or enforce such an agreement, our expertise ensures that your rights are protected and that you make informed decisions for your specific circumstances.
To speak with an experienced non-compete agreement attorney call Managing Partner Jim Rudolph at 617.723.7700 or contact us online.