Massachusetts significantly reformed its non-compete law in 2018. The Massachusetts Noncompetition Agreement Act (MNAA) created important new protections for employees โ and the state is trending toward even stronger employee rights.
Who Is Exempt from Non-Competes in Massachusetts?
The MNAA prohibits non-compete agreements entirely for certain categories of workers:
- Non-exempt employees โ workers who are eligible for overtime under the Fair Labor Standards Act
- Undergraduate and graduate students โ including interns working as part of an educational program
- Employees terminated without cause โ if you were laid off or terminated without cause, your employer cannot enforce a non-compete against you
- Employees terminated for cause โ Massachusetts also restricts enforcement even for cause terminations in many circumstances
- Employees under 18
โ The exemption for employees terminated without cause is one of the strongest employee protections in the country. If you were laid off in Massachusetts, your non-compete may be completely unenforceable โ regardless of what the agreement says.
Requirements for Enforceable Non-Competes in Massachusetts
For non-competes that are not exempt, the MNAA requires:
- 10 business days advance notice: For new hires, the non-compete must be provided at least 10 business days before the start date. For existing employees, 10 business days notice before signing is required
- Garden leave or other consideration: The employer must either pay "garden leave" (at least 50% of your highest annualized base salary during the restricted period) OR provide other mutually agreed-upon consideration
- Must be in writing and signed by both parties
- Must state employee has the right to consult an attorney
โ ๏ธ The garden leave requirement is significant. If your employer is not paying you at least 50% of your salary during the non-compete period, this is a strong argument that the agreement does not comply with Massachusetts law and may be unenforceable.
Duration and Geographic Scope in Massachusetts
The MNAA caps non-compete duration at 1 year from the date employment ends โ or up to 2 years if the employee breached their fiduciary duty or misappropriated employer property. Geographic restrictions must be reasonable and related to where the employer actually operates.
Massachusetts Will NOT Blue Pencil
Unlike many states, Massachusetts courts will not modify an overbroad non-compete to make it reasonable. If the agreement does not comply with the MNAA's requirements, courts are more likely to void it entirely. This gives employees stronger protection against poorly drafted agreements.