Understanding Non Compete Agreements in Massachusetts

Like unique apron designs that can sparkle amidst an otherwise mundane kitchen, the Craftsbury Chamber Players regrouped again for a concert on the Vermont side of Lake Memphremagog. I don’t know about you but I found myself quite willing to take on the challenge of knowing a different side of Massachusetts law and comprehensive non compete agreements. That is, as long as it is not done like a normal law article.

Strikingly vibrant in their design, just like the words you are about to read, non compete agreements can be a real gem in the business world. But what is a non compete agreement? In simple terms, a Massachusetts non compete agreement is a contract wherein an employee agrees not to work for a competing company after leaving their current employer within a specified geographical area and time frame.

However, understanding these contracts can be a little bit like trying on new aprons. In other words, there can be some real variety, and variance, especially when it comes to the inclusiveness of the legal terms. When fine details matter, you need to make sure that what you are dealing with is the right kind of fit for what you want to accomplish. For example, bound by specific terms, a non compete agreement may be enforceable only if the clause is carefully written so as not to violate the requirement of being “reasonable”.

In order to ensure that your agreement is legally valid, you should consider the following factors:

One factor that has been modified with the new law is non compete agreements pertaining to small businesses. For those owning or starting a “small” business (the law discusses a “small business owner” at M.G.L. c. 149 § 24L), a non compete agreement can no longer be entered into unless the company needs to protect confidential information or a unique customer list.

Whereas a company like Jillie Willie, an apron designer, may have legitimate business interests to protect their information, such as an exclusive print or sewing technique, even more niche apron designers may now be less able to bind a departing employee not to compete. Likewise, if you were an employee of a company like Jillie Willie, do you think you want to work for a competitor that may very well be a small business too?

So, what should a small business do in dealing with non compete agreements? Well, just like your decisions in the kitchen, the answer is not “cut and dry” but rather a well-thought out direction based on the mission of your company. Ensuring your agreement is legally compliant is one option. Dealing with employees one-on-one is another. If you are the type of person who finds yourself in need of a customer list and non-disclosure agreement, or you find yourself dealing with employees, then you might just encounter a situation where the crafting of your agreement may be as important as the fabric or print design of your aprons. As Jillie Willie would say:

“Design: what you make when you want to change the world … What could be any easier.”

So, if you want to learn more about the non compete law in Massachusetts you might just want to check out my article on massachusetts non competes – everything you need to know. Put simply, this article provides detailed information, provided in the nice presentation format that legalese likes to keep to itself.