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The excess of the fair market value of the stock at the date the option was exercised over the amount paid for the stock is taxed as compensation at the time the stock is sold. Any additional profit is taxed as capital gain.
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.
"A covenant not to compete contained in a contract for personal services will be enforced if it is reasonable, based on all the circumstances."
Massachusetts law requires that non?compete agreements be limited in time, scope, geography, and supported by consideration. A non-compete must not be broader than necessary to protect one or more of the following legitimate business interests of the employer: The employer's trade secrets.
compete agreement, often part of a broader employment contract, is a legal document prohibiting an employee from working for or starting a competitive business during or after their employment period. Noncompete agreements are recognized and enforceable under Florida law.
The material change doctrine essentially means that an employer cannot enforce a non-compete agreement against an employee if that employee's duties have materially changed since they signed the non-compete. The concept first appeared in 1968 in F.A. Bartlett Tree Expert Co.
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.
The Massachusetts Non Compete Act states that an employer must pay at least half of your average base salary for the duration of the restricted period unless the employer chooses to waive the non compete restrictions. This is called "garden leave" in the statute.