Plaintiff brings an action for a declaratory judgment arguing that he/she has fulfilled certain contractual duties and is now free from a non-competition restriction placed upon him/her in the contract.
Plaintiff brings an action for a declaratory judgment arguing that he/she has fulfilled certain contractual duties and is now free from a non-competition restriction placed upon him/her in the contract.
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In August 2018, Massachusetts governor Charlie Baker signed into law the Massachusetts Noncompetition Agreement Act, which regulates non-compete clauses by limiting their enforceability and codifying express requirements they must meet (New Massachusetts Law Limits Non-Competes). The law went into effect October 1.
The ?material change doctrine? can be invoked by former employees to void non-competition agreements signed at the inception of employment, which may leave an employer's customer relationships, i.e., ?goodwill,? and confidential proprietary information exposed to misuse and misappropriation.
"A covenant not to compete contained in a contract for personal services will be enforced if it is reasonable, based on all the circumstances."
Under Massachusetts law, a noncompete or nonsolicitation agreement may be unenforceable under certain circumstances if there are material changes in the employment relationship since the employee entered into the agreement at issue.
"A covenant not to compete contained in a contract for personal services will be enforced if it is reasonable, based on all the circumstances."
The Massachusetts Non Compete Act Exemption The Massachusetts statute specifically states that it does not apply to a non compete in connection with the sale of a business, if you are a "significant" owner and you receive "significant consideration or benefit" from the sale.