Contract With Restrictive Covenants In Massachusetts
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FAQ
Under the new law, the geographic restrictions regarding where a former employee may not compete are limited to the area where, during the past two years of the employee's employment, he or she provided services or had a “material presence or influence.” The statute does not define the phrase “material presence or ...
An "anti-raiding" restrictive covenant is “only reasonable, and thus enforceable, if it is (1) necessary to protect a legitimate business interest, (2) reasonably limited in time and space, and (3) consonant with the public interest.”
level for sure, but plenty of noncompetes are enforced at lower levels. It depends on the state, the job, the actual business risk etc. They would send the employee and new employer a cease and desist. If they don't cease and desist, and can't come to an agreement, former company can eventually sue.
Unfair Competition: The Legal Standard Chapter 93A outlines the regulations for unfair business practices. It states: "Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful."
When it comes to the duration of the non-compete, the courts generally focus on what amount of time it will take the employer to hire and train a like employee. Rarely do you find enforceable employee based non-competes which exceed one (1) year in duration.
An NDA constitutes a legally binding agreement, albeit without the same level of scrutiny as a non-compete clause. It solely restricts the use of information rather than overall competition. Typically, the agreement will specify that the employer is entitled to injunctive relief in the event of a breach.
Massachusetts Law on Non-Disclosure Agreements: In the Massachusetts statute on taking trade secrets, there is a prohibition on taking qualifying information through such acts as embezzlement, stealing, fraud, copying, and other misconduct.
There may be terms in your contract that says you can't work for a competitor or have contact with customers for a period of time after you leave the company. These are called 'restrictive covenants'. Your company could take you to court if you breach the restrictive covenants in your contract.
Time Limitations: §23 & §27 Deed restrictions cannot be enforced for more than thirty years unless a longer period is specifically stated. M.G.L.
If a deed restriction is not enforceable, you can choose to ignore it and take on the risk of a neighbor filing suit, or you can seek out a judge's ruling to have the covenant removed from the deed. Obtaining that ruling is easier when no one is actively enforcing the covenant.